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Bitcoin's long-term investors are steadily growing

Bitcoin's long-term investors are steadily growing

Mars Finance News, Reuters writes that a growing number of long-term investors are holding onto their cryptocurrencies into 2022, hoping that last December's decline was just a blip. Some industry watchers point to the potential stability of such long-term investments as an indicator of a bright future for cryptocurrencies, which move erratically. The number of bitcoins in digital wallets that have not been outflown for more than five months has been steadily increasing since last July, according to digital currency brokerage Genesis Trading, citing data from digital wallets on several exchanges.

In addition, the number of bitcoins in "illiquid" digital wallets, where spending is less than a quarter of inflows, is also growing, meaning fewer bitcoins are being actively traded. "The number of bitcoins that haven't changed hands in over a year since July has been climbing," said Noelle Acheson, head of market watch at Genesis Trading, "which is pretty amazing." In December of last year, however, BTC plunged nearly 20% and ETH recorded similar declines, as concerns about inflation and expectations that the Federal Reserve could accelerate interest rate hikes hit risky assets and many investors sought cover. While bitcoin and ethereum rose 2.9% and 6.3% last week to $43,107 and $3,350, respectively, they are still some distance away from their 2021 highs of $69,000 and $4,868. Cryptocurrency research firm Delphi Digital said their research shows a similar change, with investors holding bitcoin for longer. The firm said, "This indicates a switch from short term 'weak hands' to long term 'strong hands'."


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