Analysis Finds Long-Term Investors Leaving Bitcoin, Speculators Moving In

Chris Gaetano
Published Date:
Jun 8, 2018

A recent analysis has found that long-term investors are cashing out on bitcoin, the digital currency that seems to repeatedly crop up in headlines, while short-term speculators are cashing in, according to the Financial Times. Last November, investors who held the asset for more than a year had three times as much of the cryptocurrency as those who traded for shorter periods of time. While such long-term investors still hold more bitcoin than speculators, the ratio has reduced sharply by the time April rolled around. At that point, long-term investors held 6 million of the digital currency, versus 5.1 million held by speculators. The analysis estimates that these long-term investors sold at least $30 billion in the asset to new speculators in this time, with half the sales taking place in December, an event that is believed to be the main driver behind the recent price decline. In contrast to this liquidity injection, though, overall trading volume fell from $4 billion a day in December to $1 billion today. 

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