One metric indicates Bitcoin (BTC) is getting close to the end of its “cyclic bottom,” according to Ki Young Ju, chief executive of on-chain insights platform CryptoQuant.
Unspent transaction output (UTXO) age bands are “a set of all active supplies that were last moved within a specified age band,” and they track the trading behavior of long-term and short-term holders, according to CryptoQuant.
Explains Ju,
“Now UTXOs over six months old take 62% of the realized cap. In the 2020 March great sell-off, this indicator reached 62% as well.”
According to Ju, the on-chain metric suggests that Bitcoin is “getting close to a cycle bottom.”
The CryptoQuant CEO also notes institutions that bought Bitcoin in 2020 have mostly kept their BTC stacks dormant.
“For most cases, the same amount of BTC is still in the (custodian) wallets, which flowed out from Coinbase for highly likely institutional purchases in December 2020. Their entry price is $23,000.”
Ju says it’s “pretty obvious” that Bitcoin is in an accumulation phase.
“Institutions that drove the 2021 bull-run bought in this $25,000-30,000 range too.”
The CEO also recently noted that retail investors are leaving the crypto market while institutional investors continue to accumulate.
“Not bad for accumulating Bitcoin with institutions, but still worried about overall volume which is significantly decreased compared to last year.”
At time of writing, Bitcoin is trading for $31,563, up nearly 15% from its May 2022 low of $26,973.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sabelskaya/Andy Chipus
The post Bitcoin (BTC) Close to a Cycle Bottom Based on This Metric, According to Quant Analyst appeared first on The Daily Hodl.
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