Bitcoin’s ‘liveliness’ metric, tracking long-term holder activity, has recently increased, suggesting ongoing market dynamics with potential for continued bullish trends, according to on-chain data sources.
Analysts view this trend as indicative of a maturing bull market. Increased spending of older coins by long-term holders historically aligns with similar cycle phases.
The Bitcoin “liveliness” indicator, a metric tracking spending activity of long-term holders, suggests potential continuity in the current bull market. Analysts have noted its rise as indicative of increased coin distribution during market maturity.
Glassnode’s analysis defines liveliness as the ratio of spent coin days to total coin days. Increased coin distribution highlights mature bull phases, with prominent market commentators endorsing the metric’s importance for market understanding.
Long-Term Holders’ Profit-Taking Does Not End Bull Market
The increase in liveliness implies that long-term holders are selling, indicating profit-taking. Although this is seen as a sign of market maturity, analysts suggest it doesn’t necessarily mark the end of the bull market.
Historical data supports the viewpoint of a stable bull market with strategic profit-taking. If the macro conditions remain favorable and institutional flows continue positively, it suggests the bull market could persist despite rising liveliness.
Experts Cite Rising Liveliness as Bullish Indicator
In previous cycles, rising liveliness has been associated with mature bull markets. Past events, like the 2020-2021 bull run, saw similar trends where older coins were spent followed by a market correction.
Experts like Arthur Hayes and Raoul Pal highlight rising liveliness as indicative of ongoing market stability. They argue that current data mirrors past bull phases, suggesting the market isn’t nearing an immediate peak.
“Liveliness rises when long-term holders spend coins faster than new coin-days are accumulated, indicating distribution.” — Jan Happel, Co-founder, Glassnode
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