Blockchain analytics firm IntoTheBlock says that long-term Bitcoin (BTC) holders are gobbling up the top crypto asset to the tune of hundreds of billions of dollars.
In a new report, the market intelligence agency says that during Q1 2022, investors who have held the top crypto asset by market cap for at least a year kicked off a massive accumulation spree that now has them holding nearly 12 million BTC, worth about a staggering $551.37 billion.
IntoTheBlock notes that long-term holders started their collecting binge right after Bitcoin hit its all-time high near the end of 2021.
“Long-term investors now hold a record amount of nearly 12 million Bitcoin. This points to an accumulation phase kicking off after long-term players had been selling during the bull market, a pattern that has repeated several times with crypto asset ownership.
The long-term conviction of these addresses helps ease selling pressure and can help reinforce the belief of Bitcoin as a store of value.”
The insights company also finds that in spite of overall turbulence in the US markets, Bitcoin outperformed traditional equities in Q1.
“Bitcoin recovered most of its quarterly losses, while the S&P 500 and Nasdaq 100 ended Q1 2022 with returns of -3.4% and -7.65% respectively.”
IntoTheBlock adds that BTC outperforming major stock indices could mean Bitcoin is starting to solidify itself as a safe-haven asset.
“In the most uncertain times, Bitcoin crashed along with the rest of the market but managed to recover faster.
Bitcoin’s proposition as a global hedge to uncertainty remains unclear, though it is promising that throughout one of the toughest quarters, it outperformed.”
Bitcoin is trading sideways at $46,577 at time of writing.