CryptoQuant: Long-term investors are capitulating, this is a good sign for Bitcoin

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Analysts from the South Korean agency CryptoQuant believe that long-term investors, having not achieved their goal, are selling cryptocurrency.

CryptoQuant experts published a report saying that the bearish market trend has caused long-term investors to capitulate, and this is a positive factor for Bitcoin.

The report's authors explain that investorsthose investing in Bitcoin for the long term lost faith in growth to the planned level and began to sell the cryptocurrency. This factor signals that the price has reached a multi-year bottom. That being said, a one-time surge in sales may just be the beginning of a trend, and it will take weeks and months for long-term cryptocurrency holders to finally capitulate.

The report provides an example of how in 2014, 2015 andIn 2018, it took months for long-term BTC holders to do this. Whereas in the pandemic year of 2020, it took only a few days to surrender. The report states that this factor can be considered both positive and negative for Bitcoin.

“It is obvious that during previous periodsDuring the bearish trend, there was a long period of capitulation by long-term holders, as these participants left the market, selling their assets to new participants at a loss. Newcomers happily bought assets in huge chunks and held them in anticipation of profits during a future bull run,” the report said.

CryptoQuant analyst concluded thatlong-term holders are selling at a loss, indicating that the accumulation phase has begun. Supposedly, this could "provide an excellent opportunity for long-term investment in the market."

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Recently, a famous American investor andThe head of Legg Mason Capital Management, Bill Miller, said that he sold part of his bitcoin reserves, although he continues to look at the market positively.

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