- Investors are unwilling to put down their Bitcoin to avoid making a sale they might regret later according to CEO of Three Arrow Capital
- Bitcoin daily active entities have reached mid-2019 figures, but activity is still on the rise
Three Arrow Capital CEO Zhu Su has indicated that Bitcoin investors are now more patient and are not panic selling as they did with Bitcoin earned between 2017 and 2018.
The on-chain data has revealed that major digital asset holders have been hodling for over an entire year despite fluctuating prices and endless market corrections. A good number of the big Bitcoin investors have gone so far as to add more coins to their portfolios in that period.
Su explained that traders who sold their holdings when the markets crashed in 2018-2019 soon discovered it was the wrong decision when BTC finally broke out of that bear cycle. The CEO of Three Arrow Capital noted that most investors have chosen to practice patience so as not to fall victim to another premature decision to sell.
“One reason on-chain data shows impressive holding behavior is because so many people bought BTC in 2017/2018 only to sell at a loss after losing their temper. Anecdotally, many of these people are staying humble this once and they buy every month no matter what’s going on”, said On twitter.
Data from crypto analytics firm Glassnode has indicated In addition, 60.6% of the Bitcoin supply has not moved in the last year.
Network activity is down, but the ground is rising
Last Friday, Glassnode researchers noted that the number of daily active entities on the Bitcoin network has dropped by as much as 30% from bull market highs.
The analytics firm noted that, on average, there have been 275,000 active entities per day during February. Comparatively, this figure averaged 400,000 in November, when Bitcoin posted an all-time high.
The fall of these entities, holders of one or more wallets, has been caused by the “tepid demand” of investors, which speaks of the reduced interest of the main users.
“This level of activity is well below bull market highs, indicating tepid demand from new users“, said Glassnode on Twitter.
The current figures are behind the peak numbers of the last halving cycle and only resemble the levels seen in mid-2019. However, the long term looks promising, as the floor of activity continues to rise ever higher. that the market falls.
“However, the bottom of activity continues to rise in bear markets, reflecting longer-term network effects,” the tweet continued.