Data shows that the 1-year-old bitcoin supply has recently shown an accelerating movement, suggesting that even the cryptocurrency’s strong players are feeling the fear in the market.
Bitcoin Diamond hands start to give way in current market
According to the latest weekly report glass nodethe older supply of BTC has been observing selling in recent days.
The relevant metric here is “Recently Active 1+ Year Recovered Supply,” which measures how much a coin has moved per day that has been dormant since at least a year ago.
When the value of this indicator spikes, it means that a large amount of coins belonging to Bitcoin holders is currently being transferred.
This trend, if sustained for some time, could be detrimental to the price of cryptocurrencies, as this movement could mean that diamond hands in the market have been selling.
On the other hand, a low value for this metric means there hasn’t been any significant change in supply over the last year or so.
Related reading | Long-term Bitcoin holders lose the most since 2019
This trend suggests that hodlers are holding their tokens, which may be neutral or bullish for the token’s value.
Now, here is a chart showing the recovery trend of the last active Bitcoin supply 1 year ago over the past 12 months:
The value of the indicator seems to have been high recently | Source: Glassnode's The Week Onchain - Week 25, 2022
As you can see in the image above, a large number of coins were last active more than a year ago in recent days.
Moreover, not only that, the consumption of this old coin has been accelerating and is now reaching a value of 20k to 36k BTC per day.
This means that these long-term holders have been increasing their sales over the past few days as the price of the cryptocurrency has been struggling.
Trends show that the recent collision Even the stronger Bitcoin has brought fear and panic, who are often the last to back down during a sell-off.
If more than a year old coin sales continue, then BTC may observe a further downtrend in the near future.
As of this writing, price of bitcoin Floating around $21,000, down 5% over the past seven days. The cryptocurrency has lost 28% in value over the past month.
The chart below shows the trend of the coin’s price over the past five days.
Looks like the value of the crypto has been steadily rising over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com