Long-term bitcoin holders witness two year lows

The largest cryptocurrency has slumped 30% in 2022 and was trading around $29,500 today

Glowing orbs surge away from a bitcoin bearing the crypto’s logo                                 
According to Glassnode, the crypto market is trading around the price lows of its 2021/22 cycle – Photo: Getty Images
                                

Long-term bitcoin holders are starting to witness significant lows within their portfolio as the largest cryptocurrency by market cap faces its biggest decline since March 2020.

According to data from the latest The Week On-Chain report from on-chain intelligence provider Glassnode, the crypto market is trading around the price lows of its 2021/22 cycle on average, with a majority of long-term investors now holding unrealised losses. 

The report highlights that one of the main reasons the crypto sector is witnessing a bear market is the diminishing share of short-term holders. As speculators are flushed from the market, this causes a negative trend, and as a result, short-term holders end up selling their coins and holding fewer cryptocurrencies in general. Long-term holders end up accumulating and dominating the circulating supply.

BTC market cap

Bitcoin has slumped by around 30% in 2022 and was trading at around the $29,500 mark earlier today. BTC hit its all-time high of $68,789.63 on 10 November last year, but by January 2022 had dropped back below $35,000. 

Bitcoin tried its hand at reaching the $31,000 level earlier this month, its first rally in weeks, but the crypto market has largely struggled to gain upward momentum.

However, the crypto has been stuck below the $30,000 mark for much of the past few weeks, and last month, hit its lowest lowest point recorded since 2020. As a result, bitcoin has lost much of its gains through 2021, which was recorded as the best year for the cryptocurrency. 

Bitcoin is currently down 5.82% in the last 24 hours, according to data from CoinMarketCap as of around 11:30 BST (UTC +1).

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