Long-term holders are scrambling to purchase more BTC when the Fed interest has been continuously increasing to mitigate the inflation trouble.
The Spent Volume Age Band Index shows that the darker colors representing long-term holders do not appear mostly on the chart while the brighter colors standing for short-term investors like yellow are shown mostly on the chart. This proves that the holders who are mostly trading BTC on the market are the short-term ones, not the long-term ones. Besides, the Realized Cap HODL Wave Index indicates that the strongest BTC accumulation comes from the 1-2 year holders. Based on the above-provided data, we can conclude that long-term holders, especially 1-2 year holders are buying BTC most strongly.
The accumulation of BTC held for 1-2 years and 3-5 years is seen to usually occur during the time when the Fed raises interest rates to alleviate the high inflation rate, and this is what happens at present. In terms of taking profit, whales tend to start taking profit when the interest rate starts to be lowered by Fed.
Most of us are doing wrong as we tend to sell our BTC when the Fed raises the interest rate and buy when the whales are taking profits during the stage of lowering the Fed interest rate.
Hope you understand and don’t follow the crowd sentiment. Instead of favoring someone’s idea like “Fed rates are going to go up again, stop buying, sell your BTC”, you should try to analyze what whales are doing and do the same to survive in the rigorous crypto market.
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