Glassnode's research team, which address the sphere of on-chain cryptocurrency analytics, explained why the actual Bitcoin (BTC) market closely resembles 2017.
Is Patience a Virtue?
Analysts at Glassnode revealed a chart that demonstrates the dynamics of some very interesting metrics. They tracked the quantity of Bitcoins (BTC) that stayed dormant for at least a year.
According to the chart, the number of dormant Bitcoins (BTC) is flirting with 60%. The last time it was this high was just before the most bullish price rally of 2017.
It was this rally which catapulted the price of Bitcoin (BTC) to its actual all-time high (ATH) of $19,786 on December 17, 2017.
Shortly after the bearish reversal in 2018, the share of dormant Bitcoins (BTC) touched its local low at 40%, This resulted in a panic sell-off.
Hodling (crypto slang for 'holding') trends are crucial not only for the Bitcoin (BTC) blockchain. Adam Cochran of Metecartel Ventures DAO, highlighted that Ethereum (ETH) whales are going through the stage of accumulation.
While the price Ethereum (ETH) is nowhere near its best levels, the top 10,000 wallets in Ethereum (ETH) continue to accumulate show zero interest in selling their altcoins.
The situation with the exchange balances is quite different. While Bitcoins (BTC) continue to leave storage exchanges in favor of cold wallets, Ethereum (ETH) is accumulated by the top centralized exchanges.
For example, Bitfinex's Ethereum (ETH) balance surged almost 60%, just barely touching the insane 4M Ether mark. Analyst Elias Simons of Decentral Park suggests that this may have been caused by Bitfinex's plans to participate in the Ethereum (ETH) 2.0 staking, or to cover the gas fees of the ERC20-based Tether (USDT). Bitfinex may also target better funding rates for Ethereum (ETH) stakers than those being offered on other DeFi markets.