Bitcoin once again proved itself as a valuable asset
Each quarter of 2020 has brought new problems to the cryptocurrency market, and as the last quarter reaches, the problem seems to have surfaced faster than usual.
This is after the U.S. regulatory agency intervened again and caused market panic. The U.S. regulatory agency announced an accusation against BitMEX, which also caused the price of Bitcoin to drop. The exchange lost nearly 45,000 Bitcoin in less than 48 hours. , Although only briefly.
In fact, as of press time, BTC rebounded to $10,531, and the open interest in BitMEX futures fell to a 4-month low of $625 million. However, the holders did not hesitate about the situation in the spot market and may focus on the overall situation.
According to data provided by CoinMetrics researcher NateMaddrey, BTC HODL Waves stated that the long-term supply belt has been growing in the past three months.
This once again proves that treating digital assets as value assets is a positive signal for the long-term health of the network. Similarly, the ratio of the long-term supply belt to the short-term supply belt is very similar to the January 2016 level.
The ratio peaked during price declines or sideways, and hit a low point when the price peaked.
This network trend, coupled with the percentage of the BTC supply held for at least one year, fully demonstrates the upward momentum. The value of this particular indicator has been rising since March, and until September 30, more than 63% of the total BTC supply has been held for at least a year, a level that has not been seen since 2012.
The Bitcoin market has always been able to cope with sudden changes, and this observation proves that Bitcoin fell during the collapse led by the new crown virus and the subsequent recovery.
Interestingly, the market for Ethereum, the second largest cryptocurrency in the market, has also been affected. As the demand for Ethereum block space and Dapp continues to grow, ETH's on-chain indicators have been consistent with their January 2018 value.
According to data collected by IntoTheBlock analyst LucanOutumuro, 31.3 million Ethereum holders (67%) are currently making money, or profit from their positions based on their average purchase price.
As Ethereum enthusiasts have more and more long-term investment prospects to buy ETH, cryptocurrency assets have been emphasizing its potential as a store of value assets.