Thursday, July 25, 2024

Despite Bitcoin’s recent fluctuations signaling turbulent times ahead, the most recent Bitfinex Alpha report indicates a marketplace characterized by complexity, foresight, and unwavering conviction. Approximately 40% of all Bitcoins have remained untouched for over three years, setting a new record for this metric and underscoring the robust foundation of long-term investors.

Steel Resolve: Tenacity Among Bitcoin’s Long-Term Investors Unshaken by Recent Market Uncertainty

The Bitfinex Alpha report offers an insightful examination of Bitcoin’s supply dynamics. The quantity of Bitcoin that has been idle for at least a year appears to closely reflect changes in Bitcoin’s price, serving as a possible indicator of market volatility.

Prior to the substantial price decrease on August 17, 2023, the one-year idle supply showed a significant reduction from 13.45 million to 13.32 million, potentially forewarning the impending price drop. Nevertheless, a more comprehensive perspective reveals an alternative narrative. The metric for Bitcoin held inactive for greater than three years has been ascending and has recently set a new record.

Scrutiny of the “Coin Days Destroyed” metric following the market decline indicates minimal movement from longstanding holdings, accentuating the steadfastness of these holders in the long term. Bitfinex analysts have noted that these holders have been progressively accumulating more Bitcoin.

“Long-term Bitcoin investors have shown consistent accumulation,” state the Bitfinex researchers. “Particularly, over a rolling 30-day span, this trend of accumulation has been manifest since March 2023, suggesting a pervasive sense of optimism and a potential resilience to market shifts.”

Simultaneously, Bitcoin miners have been diligently maintaining the network, escalating the network difficulty to a record 55.62 trillion hashes as of August. This computational capacity serves to secure the Bitcoin network while also compensating miners for their participation. Furthermore, Bitfinex’s Alpha report highlights that Bitcoin’s hash rate reached a milestone of 414 terahash per second (TH/s) in August, representing a 60% uptick since January.

However, the report notes that, when assessed through the lens of historical data, current volatility measures appear relatively restrained. Implied volatility has stabilized since the sharp decline on August 17, synchronizing with more moderate historical volatility levels. The one-year Bitcoin Velocity metric, which gauges on-chain activity, experienced a decline earlier in the year, potentially indicating a market hiatus. Though obstacles may lie ahead, intrinsic metrics divulge a multifaceted range of forces poised to steer its forthcoming direction.

In conclusion, the report emphasizes that while long-term holders who have retained their Bitcoin through market highs and lows continue to show robust resilience, those who have acquired their Bitcoin during more recent bear market periods appear to be “unsettled” though not overtly panicky.

We invite you to share your perspectives and analyses on the findings of the latest Bitfinex Alpha report in the comments section below.

Frequently Asked Questions (FAQs) about Bitfinex Alpha Report on Bitcoin Holders

What does the latest Bitfinex Alpha report reveal about long-term Bitcoin holders?

The Bitfinex Alpha report indicates that approximately 40% of all Bitcoins have been inactive for over three years. This sets a new record for this particular metric, highlighting the strong foundation of long-term investors despite recent market volatility.

What is the significance of the “one-year inactive supply” of Bitcoin as discussed in the report?

The “one-year inactive supply” represents the quantity of Bitcoin that has been dormant for at least a year. According to the report, this metric closely mirrors changes in Bitcoin’s price, potentially serving as an indicator of market volatility. Prior to the price drop on August 17, 2023, the one-year inactive supply decreased significantly, possibly forewarning the impending decline.

What does the report say about Bitcoin miners?

Bitcoin miners are continuing their work diligently, escalating the network difficulty to a record 55.62 trillion hashes as of August 2023. This computational capacity serves not only to secure the Bitcoin network but also to reward miners for their involvement. The hash rate also reached a milestone of 414 terahash per second in August, marking a 60% increase since January.

What insights does the report offer on Bitcoin’s volatility?

According to the report, current volatility measures appear subdued when viewed through historical lenses. Implied volatility has stabilized since the decline on August 17, aligning with moderate historical levels of volatility.

Does the report suggest that the market sentiment for Bitcoin is optimistic or pessimistic?

The report suggests a generally optimistic market sentiment. Long-term holders have been consistently accumulating more Bitcoin, especially over a rolling 30-day period since March 2023. This indicates a pervasive sense of optimism and a potential resilience to market fluctuations.

What does the report conclude about newer long-term holders versus older long-term holders?

The report concludes that while long-term holders who have retained their Bitcoin through various market cycles remain robustly resilient, those who have acquired their Bitcoin during more recent bear markets appear to be “unsettled,” although not in a state of panic.

More about Bitfinex Alpha Report on Bitcoin Holders

  • Bitfinex Alpha Report
  • Historical Volatility Measures in Cryptocurrency
  • Understanding Bitcoin Network Difficulty
  • Market Sentiment Indicators in Cryptocurrencies
  • The Concept of “Coin Days Destroyed” in Cryptocurrency Analysis
  • An Overview of Bitcoin Velocity
  • A Guide to Long-Term Cryptocurrency Investment Strategies

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5 comments

InvestorJane August 30, 2023 - 11:03 pm

So miners are still going strong, even with all this market chaos? Thats impressive. Security’s through the roof with those hash rates.

Reply
DayTraderDave August 31, 2023 - 3:52 am

volatility is subdued? Seriously? Felt like a roller coaster to me last month. Then again stats don’t lie. Maybe I should be more optimistic lol.

Reply
EconMike August 31, 2023 - 7:18 am

interesting stuff, especially the one year inactive supply and how it mirrors BTC price changes. Could be a handy tool for forecasting, huh.

Reply
CryptoJoe42 August 31, 2023 - 8:21 am

Wow, 40% of all BTC inactive for 3 years? thats a lot of hodling right there. Makes you wonder how much is actually out there for trading.

Reply
CryptoAnalyst August 31, 2023 - 4:15 pm

Long term holders accumulating more over time. Now that’s a bullish sign if I ever saw one. Makes me wanna buy more and wait it out.

Reply

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