Bitcoin Whales Showing Tendency To Retain Assets, Could Signal Market Shift

Long-term hZenger News of Bitcoin (CRYPTO: BTC), along with a significant portion of short-term hZenger News, are showing tendencies to retain their assets for extended durations.

This indicates that so-called whale investors, those who have maintained large Bitcoin reserves inactive for prolonged periods, are likely to reallocate or potentially liquidate their holdings during these pivotal moments.

On-chain Bitcoin activity has reached unprecedented levels in terms of new address creation, according to a Bitfinex report.

Interestingly, this surge is primarily driven by short-term holder supply, allowing the assets held by long-term hZenger News to consistently hit new highs as the former group liquidates.

This pattern underscores the commitment of seasoned investors to hold onto their assets within the current price bracket.

Despite the broader market’s recent relief, as evidenced by the CBOE volatility index settling around 18 points, a level not seen since May, Bitcoin’s behavior has been notably distinct.

Historical data reveals that Bitcoin has only experienced positive growth in September thrice, with each instance followed by a profitable October.

As the crypto community delves deeper into these market dynamics, discussions about such intricate financial patterns are anticipated to be a focal point at the upcoming Zenger News’s Future of Digital Assets conference on Nov. 14.

Bitcoin showcased resilience during the majority of the stock market’s recent downturn, rallying when the broader market showed signs of recovery.

The cryptocurrency concluded the month at a value of $26,980.

However, the Bitcoin options market is hinting at potential volatility on the horizon.

The current options implied volatility stands at 36.4%, while the historical volatility is pegged at 27.1%.

The previous week has been marked by notable fluctuations and significant market movements. A pronounced increase in taker buy volumes typically indicates retail investors broadening their portfolios across a diverse array of coins.

While Bitcoin has registered modest growth this week, seemingly countering the S&P 500’s downtrend, lesser-known coins have witnessed a surge in value.

Produced in association with Benzinga