Bitcoin's recent sell-off has caused its price to fall below $7,500 for the first time since May, but this is not caused by long-term Bitcoin holders.
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Instead, according to consulting research firm Delphi Digital, bitcoin newcomers (investors holding between one and three months) caused a sharp fall in prices in October.
The company said that in the days following the sell-off, investors holding Bitcoin between 6-12 months and 12-18 months generated additional volatility and the exchange's inflow of assets increased accordingly.
Bitcoin accounted for a record high in five years
Delphi Digital uses the unsuccessful transaction output (UXTO) data to sort by bitcoin last time. The length of time that Bitcoin remains stationary and not moved is referred to as "unexpended transaction output time."
The figure below divides bitcoin into different colors. For example, green represents bitcoin that has not moved for at least one year; black curves represent the price of bitcoin; light blue lines have been growing.
(From: Delphi Digital)
Despite the ups and downs of price and market sentiment, long-term holders of bitcoin have not moved much this year. 55.6% of Bitcoin did not move for at least a year and reached a peak of 60.8% at the end of April, currently at 58.3%.
In addition, the number of bitcoins that have not moved for at least two years accounted for 38.7% of the total circulation supply, up from 34.6% at the beginning of the year.
However, the most notable is that 21.6% of Bitcoin has not moved for at least five years, setting a record high. This year, the value has increased by 1.1%.
Delphi Digital said:
UXTO can be used to distinguish between small periods and real alternating periods of bulls and bears. When the price really takes off, there will be no long-term holders cashing in.
Bitcoin long-term holders will determine the top and bottom of the cycle , but short-term traders will have a greater impact on prices in the cycle as they measure factors such as new capital flows into the cryptocurrency market.