Online data provider Glassnode warnings Shared outputs with lifetime 1 year to 2 years (7 days MA) Metric system This could give the market some clue as to the source of the main selling pressure that is currently driving Bitcoin and other cryptocurrencies down.
The Glassnode indicator was developed to determine the output amount of Bitcoin wallets with different lifespans. With the setting for the lifetime, the user can determine whether the output is “old” or “young”.
The previous 1-month high of 307,060 was observed on December 19, 2021
View the index: https://t.co/LkamNRCCB3 pic.twitter.com/0xD8kJQK6A
– Glasnode warning (@glassnodealerts) December 28, 2021
Although “young” donors may not have the same impact on the market as “old” donors. Short-term asset owners are typically those who entered the asset shortly before it was sold in order to generate moderate income by holding the asset for a moderate period of time.
On the other hand, it is often “old” financiers who move or change trends in the market, as their positions are more likely to be significantly larger and have more influence on the market. In this case, the percentage of “old” donors rose dramatically by breaking a one-month record.
History of the use of “old” coins
According to historical data from the metric, higher spending ratios of “old” units almost always correlate with negative price movements in the crypto market. The spike in spending on November 11th is more of a catalyst for the 28% retracement of Bitcoin seen by the market today.
A decline in the spending ratio is often seen as a signal for the accumulation phase, in which medium- or long-term oriented investors prefer to increase their positions or their total portfolio. The metric is often used on foreign exchange reserves and outflows. Both indices are still showing low capital inflows and reserve ratios, which shows that the market has not turned completely around.