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Following the renewed optimism around Bitcoin, the largest cryptocurrency asset, Axel Adler Jr, a research and data analyst at CryptoQuant, has spotted a noticeable drop in the willingness of investors to sell their BTC holdings. This pattern shows that there is a rising confidence in the prospect of additional gains in the flagship crypto asset as the market as a whole experiences a significant recovery.
Waning Bitcoin Selling Pressure From Investors
The CryptoQuant’s analyst, Axel Adler Jr, highlighted the positive development in his latest sentiment research. His analysis underscores a change in outlook where holders are constantly choosing to keep their BTC holdings rather than sell them, despite recent market rallies.
According to the expert, Bitcoin has become a major investment asset in addition to being a method of exchange in recent years, indicating the potential of the digital asset. This sentiment appears to be triggering confidence around the coin as the number of BTC deposit addresses across all exchanges has significantly decreased, with the most current on-chain data indicating a low of 25,000.
Adler noted that the drop in deposit addresses to 25,000 is a crucial indicator that could point to an adjustment in investors’ approach to storing their BTC. Specifically, with the recent market recovery, this drop suggests that the majority of holders are looking forward to clinging onto their holdings in expectation of future price increases.
Looking at the trend from a behavioral economics perspective, Adler claims the recent pattern might indicate that investors in Bitcoin are becoming more confident, which is driven by several factors such as rising institutional investment in cryptocurrencies.
It is worth noting that the analyst considers this development a bullish trend that could trigger significant future price increases for BTC, as the decline in investors’ desire to sell the asset could result in less BTC being available for purchase. “This is undoubtedly a bullish signal for the market, as it indicates expectations of higher future values,” he added.
Veteran Holders Are Holding On To Their BTC
Ki Young Ju, CryptoQuant’s Chief Executive Officer (CEO) and founder, has identified this sentiment mostly among veteran BTC holders, particularly those above 3 years old. As the crypto market transitions into a bullish phase, the CEO believes those who may be selling their Bitcoin are holders below 3 years, noting that veteran investors are willing to hold.
According to Ju, recent data shows that once BTC got closer to its previous all-time high, those holding for 6 months to 2 years regarded as bull market investors, sold out the majority of their holdings. In addition, Ju noted that holders of over 2 years, which are bear market investors were also seen selling roughly 67% of their BTC. While these holders are selling, all age groups of veteran investors who have gone through several cycles are exhibiting record highs in UTXO supply, suggesting rising confidence within older investors.
Featured image from iStock, chart from Tradingview.com
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