Cryptocurrency analyst Axel Adler provides an analysis regarding changes in Bitcoin long-term investor behavior. The article discusses significant changes in supply and volatility levels.
Decline in Long-Term Investor Supply
Axel Adler states that a significant decline in long-term investor (LTH) supply has been observed since Bitcoin reached a price of $118,000. The analyst noted a decrease of approximately 52,000 BTC and interprets this shift as a move from accumulation towards distribution by long-term investors.
Bitcoin Volatility and Its Significance
Another key aspect of Adler's assessment is Bitcoin's volatility. Quarterly volatility has fallen to 70%, which is very close to the local low of 62% recorded at $26,000 in September 2023. Adler remarked that this low volatility indicates significant capital entering the market, rendering Bitcoin a 'slower' asset. The highest volatility recorded this cycle was 143%, while in previous cycles, it reached as high as 236%.
Conclusion on Current Trends
Changes in long-term investor behavior and declining volatility may signal a shift towards new market trends for Bitcoin. According to Adler, similar changes were previously observed in uptrend cycles, and they could significantly impact future price movements of this asset.
Adler's analysis emphasizes the importance of understanding long-term investor behavior and Bitcoin's volatility for predicting further market changes. These factors may significantly influence future price movements of assets.
