In the midst of market volatility and regulatory pressures, long-term Bitcoin holders remain unfazed, continuing to accumulate the digital asset. But what does this trend mean for the future of Bitcoin, and how do the metrics support this accumulation pattern? Over the past month, Bitcoin’s price has fluctuated with every major macro event and regulatory announcement, such as the SEC’s recent lawsuits against Coinbase and Binance, which allege multiple securities violations and contain language that could reshape the industry. These events have only introduced more volatility, and even though Bitcoin’s price swings have not been as aggressive as they could be, they have led to a chaotic and uncertain market atmosphere.

Nevertheless, this has not deterred long-term holders from accumulating.

Diamond hands forever

Long-term holders are addresses that have held onto their coins for at least 155 days without moving them, showing a more patient and long-term investment approach to Bitcoin. As such, they serve as a vital indicator of market sentiment, as short-term market fluctuations are less likely to affect them.

Despite the ongoing market uncertainty, holders have continued their Bitcoin accumulation. Data from Glassnode showed that holders have been increasing their BTC position since the beginning of the year, with every single day showing a positive change in their position.

A notable accumulation spike was observed in early June, sparking a new wave of accumulation. As of June 12, hodlers were increasing their positions at a rate of 39,233 BTC per month.

Graph showing the hodler net position change YTD (Source: Glassnode)

Historically, net changes in hodler positions have been inversely correlated with Bitcoin’s price fluctuations — when Bitcoin’s price peaks, long-term hodlers decrease their positions. This indicates experienced market participants tend to buy more Bitcoin when its price is low and sell when the price increases.

Graph showing the holder net position change and Bitcoin’s price from July 2018 to July 2023 (Source: Glassnode)

Another on-chain metric, Coin Days Destroyed 90 (CDD-90), further supports this accumulation trend.

Coin Days Destroyed is a way of measuring the movement of old coins. Holding a single Bitcoin for a day creates one coin day, while moving the Bitcoin destroys the coin day. CDD tracks the total age of all Bitcoins moved on a given day, providing insight into how many older coins held by long-term holders are on the move.

And while CDD provides a solid overview of the state of old coins, CDD-90 is a much more relevant measure. The metric adds up all the CDD from the past 90 days, providing a better insight into Bitcoin’s economic activity over a more extended period. An uptrend in CDD indicates holders who own coins with long lifespans are selling, while a downtrend shows a decrease in interest.

Since February 21, the CDD-90 has been moving sideways. This suggests that hodlers have slowed their spending and are increasing their Bitcoin positions. This accumulation reduces the amount of Bitcoin available in the market, tightening the supply.

Graph showing Coin Days Destroyed 90 (CDD-90) YTD (Source: Glassnode)

The accumulation from long-term hodlers and the sideways trend of the CDD-90 suggest a continuous interest in Bitcoin that defies the uncertain conditions in the market. While the immediate future of Bitcoin remains uncertain given the complexity of the macro and intra-industry factors at play, these metrics indicate a silent but firm confidence in the asset.

Cryptocurrency Regulations Around the World: The EU

Cryptocurrencies: Legal, member-states may not introduce their own cryptocurrencies Cryptocurrency exchanges: Regulations vary by member-state Cryptocurrencies are broadly considered legal across the European Union, but cryptocurrency exchange regulations are different in individual member states. Cryptocurrency taxation also varies but many member-states charge capital gains tax on cryptocurrency-derived profits at rates of 0-50%. In 2015, the Court of Justice of the European Union ruled that exchanges of traditional currency for cryptocurrency should be exempt from VAT. In January 2020, the EU’s Fifth Anti-Money Laundering Directive (5AMLD) brought cryptocurrency-fiat currency exchanges under EU anti-money laundering legislation, requiring exchanges to perform KYC/CDD on customers and fulfill standard reporting requirements. In December 2020, 6AMLD came into effect: the directive made cryptocurrency compliance more stringent by adding cybercrime to the list of money laundering predicate offenses.

Exchanges

Cryptocurrency exchanges are not currently regulated at a regional level. In certain member states, exchanges have to register with their respective regulators such as Germany’s Financial Supervisory Authority (BaFin), France’s Autorité des Marchés Financiers (AMF), or Italy’s Ministry of Finance. Authorizations and licenses granted by these regulators can then passport exchanges, allowing them to operate under a single regime across the entire bloc. 6AMLD also had consequences for cryptocurrency exchanges. Under the directive, liability for money laundering offenses is extended to legal persons as well as individuals, meaning that the leadership employees of cryptocurrency wallet providers and cryptocurrency exchanges must exercise much greater oversight of their internal AML controls.

Future Regulations

The EU is actively exploring further cryptocurrency regulations. An EU draft document expressed concerns about the risks associated with private digital currencies and confirmed that the European Central Bank was considering the possibility of issuing its own digital currency. In January 2020, the European Commission announced a public consultation initiative, seeking guidance on where and how crypto assets fit into the EU’s existing regulatory framework. The Commission followed-up in September 2020 with a new proposal known as the Markets in Crypto-Assets Regulation (MICA). The proposal set out draft regulatory measures for cryptocurrencies including the introduction of a new licensing system for crypto-asset issuers, industry conduct rules, and new consumer protections. In July 2021, the European Commission published a set of legislative proposals with consequences for virtual asset service providers (VASP) across the bloc. The proposals will see transfer of fund regulations (TFR) extended to all VASPs in the EU, and will mandate the collection of information about senders and recipients of cryptocurrency transfers.

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Tradingcredit.net has no position in any of the shares mentioned, Views expressed on the content mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at “Tradingcredit” we believe that considering a diverse range of insights makes us better publishing media portal

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In the midst of market volatility and regulatory pressures, long-term Bitcoin holders remain unfazed, continuing to accumulate the digital asset. But what does this trend mean for the future of Bitcoin, and how do the metrics support this accumulation pattern? Over the past month, Bitcoin’s price has fluctuated with every major macro event and regulatory announcement, such as the SEC’s recent lawsuits against Coinbase and Binance, which allege multiple securities violations and contain language that could reshape the industry. These events have only introduced more volatility, and even though Bitcoin’s price swings have not been as aggressive as they could be, they have led to a chaotic and uncertain market atmosphere.

Nevertheless, this has not deterred long-term holders from accumulating.

Diamond hands forever

Long-term holders are addresses that have held onto their coins for at least 155 days without moving them, showing a more patient and long-term investment approach to Bitcoin. As such, they serve as a vital indicator of market sentiment, as short-term market fluctuations are less likely to affect them.

Despite the ongoing market uncertainty, holders have continued their Bitcoin accumulation. Data from Glassnode showed that holders have been increasing their BTC position since the beginning of the year, with every single day showing a positive change in their position.

A notable accumulation spike was observed in early June, sparking a new wave of accumulation. As of June 12, hodlers were increasing their positions at a rate of 39,233 BTC per month.

Graph showing the hodler net position change YTD (Source: Glassnode)

Historically, net changes in hodler positions have been inversely correlated with Bitcoin’s price fluctuations — when Bitcoin’s price peaks, long-term hodlers decrease their positions. This indicates experienced market participants tend to buy more Bitcoin when its price is low and sell when the price increases.

Graph showing the holder net position change and Bitcoin’s price from July 2018 to July 2023 (Source: Glassnode)

Another on-chain metric, Coin Days Destroyed 90 (CDD-90), further supports this accumulation trend.

Coin Days Destroyed is a way of measuring the movement of old coins. Holding a single Bitcoin for a day creates one coin day, while moving the Bitcoin destroys the coin day. CDD tracks the total age of all Bitcoins moved on a given day, providing insight into how many older coins held by long-term holders are on the move.

And while CDD provides a solid overview of the state of old coins, CDD-90 is a much more relevant measure. The metric adds up all the CDD from the past 90 days, providing a better insight into Bitcoin’s economic activity over a more extended period. An uptrend in CDD indicates holders who own coins with long lifespans are selling, while a downtrend shows a decrease in interest.

Since February 21, the CDD-90 has been moving sideways. This suggests that hodlers have slowed their spending and are increasing their Bitcoin positions. This accumulation reduces the amount of Bitcoin available in the market, tightening the supply.

Graph showing Coin Days Destroyed 90 (CDD-90) YTD (Source: Glassnode)

The accumulation from long-term hodlers and the sideways trend of the CDD-90 suggest a continuous interest in Bitcoin that defies the uncertain conditions in the market. While the immediate future of Bitcoin remains uncertain given the complexity of the macro and intra-industry factors at play, these metrics indicate a silent but firm confidence in the asset.

Cryptocurrency Regulations Around the World: The EU

Cryptocurrencies: Legal, member-states may not introduce their own cryptocurrencies Cryptocurrency exchanges: Regulations vary by member-state Cryptocurrencies are broadly considered legal across the European Union, but cryptocurrency exchange regulations are different in individual member states. Cryptocurrency taxation also varies but many member-states charge capital gains tax on cryptocurrency-derived profits at rates of 0-50%. In 2015, the Court of Justice of the European Union ruled that exchanges of traditional currency for cryptocurrency should be exempt from VAT. In January 2020, the EU’s Fifth Anti-Money Laundering Directive (5AMLD) brought cryptocurrency-fiat currency exchanges under EU anti-money laundering legislation, requiring exchanges to perform KYC/CDD on customers and fulfill standard reporting requirements. In December 2020, 6AMLD came into effect: the directive made cryptocurrency compliance more stringent by adding cybercrime to the list of money laundering predicate offenses.

Exchanges

Cryptocurrency exchanges are not currently regulated at a regional level. In certain member states, exchanges have to register with their respective regulators such as Germany’s Financial Supervisory Authority (BaFin), France’s Autorité des Marchés Financiers (AMF), or Italy’s Ministry of Finance. Authorizations and licenses granted by these regulators can then passport exchanges, allowing them to operate under a single regime across the entire bloc. 6AMLD also had consequences for cryptocurrency exchanges. Under the directive, liability for money laundering offenses is extended to legal persons as well as individuals, meaning that the leadership employees of cryptocurrency wallet providers and cryptocurrency exchanges must exercise much greater oversight of their internal AML controls.

Future Regulations

The EU is actively exploring further cryptocurrency regulations. An EU draft document expressed concerns about the risks associated with private digital currencies and confirmed that the European Central Bank was considering the possibility of issuing its own digital currency. In January 2020, the European Commission announced a public consultation initiative, seeking guidance on where and how crypto assets fit into the EU’s existing regulatory framework. The Commission followed-up in September 2020 with a new proposal known as the Markets in Crypto-Assets Regulation (MICA). The proposal set out draft regulatory measures for cryptocurrencies including the introduction of a new licensing system for crypto-asset issuers, industry conduct rules, and new consumer protections. In July 2021, the European Commission published a set of legislative proposals with consequences for virtual asset service providers (VASP) across the bloc. The proposals will see transfer of fund regulations (TFR) extended to all VASPs in the EU, and will mandate the collection of information about senders and recipients of cryptocurrency transfers.

See: full terms and conditions. [ad_2] Written & Published by “(www.tradingcredit.net)” – Native Hired Writers

If you need to forward publishing this Article on your site – click on (Contactus Page to reach us)

Tradingcredit.net has no position in any of the shares mentioned, Views expressed on the content mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at “Tradingcredit” we believe that considering a diverse range of insights makes us better publishing media portal

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