Long-term bitcoin holders increase token stash as BTC prices decouple from Nasdaq

[ad_1]

Long-term bitcoin (BTC) investors are hoarding tokens as the price of the biggest cryptocurrency declines, decoupling it from the continued rise of Wall Street’s tech-heavy Nasdaq index.

Blockchain analytics firm Glassnode’s long-term net position change indicator, which tracks the 30-day change in the net amount of BTC entering or leaving exchange wallets that tend to hold coins for more than 30 days. six months, turned positive in early April and has surged in the past four weeks.

The characteristic image shows that the net accumulation is currently occurring at the fastest rate since October 2021. This indicates that investors view bitcoin’s recent weakness as a typical bull market breather.

“Long-term BTC holders are adding to their positions, implying that investors view the recent pause in price movement as an opportunity to acquire more,” Q9 Capital, a crypto investment platform, said in a statement. an email, referring to the rise of the net. position change metric.

Glassnode defines long-term holders as wallets holding their coins for at least 155 days without selling or moving them.

Bitcoin broke through the $31,000 mark on April 14, hitting the highest since June 2022, according to data from CoinDesk. Since then, the price of the cryptocurrency has fallen 12% to $27,500, while the Nasdaq has risen more than 2% since mid-April. The Nasdaq/S&P 500 ratio, which bitcoin has tracked closely in the past, also rose more than 2% during this time.

Divergence is a cause for concern for Bitcoin bulls, according to Markus Thielen, head of research and strategy at Matrixport.

“Based on the relationship with tech stocks (Nasdaq), Bitcoin should now have been above $30,000, and the fact that it’s not should be a warning to all short-term traders,” he said. Thielen in a note to customers. “This decoupling could initiate a larger divergence between the two.”

“Many equity investors expected a US recession to be imminent, only to be disappointed as tech stocks continue to rally. These shorts need to be covered. Unfortunately, Bitcoin does not have significant shorts. that could be rushed – hence the potential divergence between Nasdaq and Bitcoin,” Thielen added.

[ad_2]