Long-term cryptocurrency owners’ desire to keep growing their coin holdings has weakened. Concerns that the demise of cryptocurrency exchange FTX may prolong the crypto winter led to this situation. The third-largest exchange in the world at the time, created by Sam Bankman-Fried, filed for bankruptcy last week.
Read CRYPTONEWSLAND onAccording to the data analytics firm, Cryptoquant, when the long-term-held coins are moved they will be considered young-age coins.
Additionally, when these coins are moved out to new wallets this indicates that they were bought by another person. This is what has been happening currently. The purple and pink metrics have started dropping as the quantities of these coins are reduced. Purple and pink metric are the coins that did not move out of their wallet for 6 to 12 months.
Conversely, according to Cryptoquant, the young coin age band indicator is spontaneously increasing. This hence means new coins are entering this band which is likely that new traders are accumulating these coins from others who were holding them in the long term.
It is noteworthy that In 2015-2018 an increase in the young coins age band resulted in a market creating higher highs. This owes to an increase in money flow (buying pressure) in the market which could be seen by the increase in the young-age coins. The same event occurred in 2018-2021.
It is, however, to be seen if this would happen in the current situation. A Twitter user has gone contrary to this expectation mentioning that the current marketplace has new players. Further, this means that the new players may have affected the market situation. This is evident from the recent happenings in the FTX fiasco.
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