<\/p>\n
- \n
- In its current cycle, BTC\u2019s market movements mimic the recovery phase from a major bear market noted in 2016 and 2019. <\/span><\/em><\/li>\n
- There is a strong presence of long-term holders in the market.<\/span><\/em><\/li>\n<\/ul>\n
In its latest <\/span>report<\/span><\/a>, on-chain data provider Glassnode has found that Bitcoin\u2019s [BTC]<\/a> current market structure resembles the recovery phase from a major bear market similar to 2016 and 2019.\u00a0<\/span><\/p>\n
\nRead\u00a0Bitcoin\u2019s [BTC] Price Prediction<\/a>\u00a02023-24<\/p>\n
\nThis is based on a model that measures the difference between the wealth held by the coin\u2019s long-term and short-term investors and the pattern of coin rotation between both cohorts of investors.<\/span><\/p>\n
Long-term holders and their unwavering resilience<\/b><\/h4>\n
According to Glassnode, Bitcoin\u2019s market capitalization has historically surpassed its realized capitalization. However, this might not be the case during severe bear markets like the latter half of 2022, where BTC\u2019s market capitalization fell below its realized capitalization.\u00a0<\/span><\/p>\n
BTC\u2019s Realized HODL Waves metric, which tracks this trend, shows that BTC\u2019s realized capitalization \u201ctends to plateau or slightly draw down\u201d during bear markets, reflecting coin transfers and revaluation to lower acquisition prices.<\/span><\/p>\n
When the BTC market is in an uptrend, coins long-held by long-term investors are transferred to newer investors due to the influx of fresh demand. Conversely, during periods of downtrend, \u201cpaper hands\u201d and speculators transfer coins to longer-term holders.<\/span><\/p>\n
According to Glassnode, in the current cycle:<\/span><\/p>\n
\n
\u201cThe market has reached an equilibrium between these two investor groups, with a slightly positive inflow of newer investors entering the market (demand side). This resembles the conditions seen in 2016 and 2019, where the market attempted to recover from a significant bear market drawdown.\u201d<\/span><\/p>\n<\/blockquote>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/woc-41-02.png\")
<\/a><\/p>\nSource: Glassnode<\/p>\n<\/div>\n
Glassnode assessed the behavior of BTC investors based on the age of their holdings. For long-term holders who have held their coins for over 12 months, their holdings peak during bear markets, indicating accumulation during market lows. <\/span><\/p>\n
This cohort of investors represents price-insensitive investors who accumulated during the bear market and held through it.\u00a0<\/span><\/p>\n
According to Glassnode, BTC\u2019s long-term investors hold more than 15% of the coin\u2019s total capital during bear market cycles.<\/span><\/p>\n
- There is a strong presence of long-term holders in the market.<\/span><\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Group-137691557.png\")
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/woc-41-07.png\")