The Accumulation of Bitcoin might lead to a 2013-Style Price Pump

Despite the recent crypto crash in which Bitcoin along with other altcoins took a heavy impact and prices were slashed in half and kept on declining, the traders and crypto holders have not sold their Bitcoins stash. Bitcoin’s price did drop from $65k to $30k, but there was no data on the market charts for the long-term holders of the cryptocurrency regarding the selling of cryptocurrency. Although, the on-chain analysis did indicate a surge in the Bitcoin reserves among the client’s wallets. All of it might sound very speculative and cheesy for the investors to hold onto their Bitcoin’s stash, but there is a bigger picture at play here. 

Even the miners who are literally known for turning over their Bitcoins that they have mined for immediate cash seem to accumulate their take. The newly minted Bitcoin due to this very scenario is in short supply in the market, and it could lead the market towards a more serious crash where there is no new Bitcoin to trade with. The BTC supply in the crypto market is in a serious deficit. The latest Bitcoin supply that was dumped onto the crypto market got picked up almost instantly by the miners and long-term holders.

Bitcoin Holders have to Let Go of their Stash at Some Point in Time

During the USD/BTC rate decline, the short-term traders, the people who only accumulate the cryptocurrency for less than a week, were the biggest sellers. The new traders panic sold all of their Bitcoin amid the mid-may crash that gave the miners and the long-term holders to accumulate these coins too. The long-term holders might sound invincible, but that is not the case. According to the data accumulated by Glassnode, the long-term holders do have a sense of their profit or less regarding the investment that they have made over some point in time. 

They might reach a point where their tendency to hold off any more cryptocurrency breaks, and they eventually have to let go. The same thing happened around 2013 as right after the market crash, the long-term holders started to accumulate as much Bitcoin as they could only to sell it later at the double the price. Something similar might be brewing here as there are chances that Bitcoin’s price will eventually increase.

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