- Investors are unwilling to let go of their Bitcoin to avoid making a sale they might regret later, according to Three Arrow Capital CEO
- Bitcoin’s daily active entities have hit mid-2019 numbers, but the activity remains on a rise
Three Arrow Capital CEO Zhu Su has indicated that Bitcoin investors now have more patience and are not panic selling as they did for the Bitcoin copped between 2017-2018.
On-chain data has revealed that the top digital asset holders have been hodling for more than an entire year despite the fluctuating prices and endless market corrections. A good number of the large Bitcoin investors have gone as far as adding more coins to their portfolios in that period.
Su explained that traders who sold their holdings as the markets slumped between 2018 and 2019 soon enough found it to be a wrong decision when BTC eventually came out of this bear cycle. The Three Arrow Capital CEO noted that most investors have opted to practice patience to not fall victim to another premature decision to sell.
“One reason on-chain data is showing impressive holding behaviour is because many people actually did buy $BTC in 2017/2018 only to sell for a loss after losing patience. Anecdotally, many of these people are staying humble this time and buying every month regardless of what else is happening,” he said on Twitter.
Data from crypto analytics firm Glassnode has further indicated that up to 60.6% of Bitcoin’s supply has not moved in the last year.
Network activity is down, but the floor is rising
Last Friday, Glassnode researchers observed that the number of daily active entities on Bitcoin’s network has fallen by up to 30% from bull market highs.
The analytics firm noted that, on average, there have been 275,000 active entities per day across February. Comparatively, this figure averaged 400,000 in November when Bitcoin clocked a historic peak.
The slump of these entities, holders of one or more wallets, has been caused by investors’ ‘tepid demand,’ which is telling of the reduced interest from mainstream users.
“This level of activity is far below bull market highs, indicative of tepid demand from new users,” Glassnode said on Twitter.
Current figures lag the peak numbers of the last halving cycle and only draw similarity to the levels seen mid-2019. However, the long-term looks promising as the activity floor keeps rising every time the market dips.
“However, the activity floor continues to climb in bearish markets, reflecting longer-term network effects,” the tweet continued.
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