May 2020 saw a huge sell-off of many cryptocurrencies, and there have been very few significant rises or falls within the market since. That comes only one month after Coinbase becoming public and setting a new all-time high. The low that we see recently (less than 1.6 billion in a week for Bitcoin, Ethereum $800,000, Cardano $600,000, and Binance only $400,000) has raised the question; what will be the deciding factor in the next big market change?
Glassnode, the blockchain data specialist, believes that the next significant change in market direction will be through supply and demand instead of speculative premiums or discounts.
All derivatives have experienced a similar decrease, as the average length of HODLing has increased through recent sell-offs, with >13% of the total supply being held by holders between three and five years.
What that means is that people have switched their mentalities from buying to HODLing or selling their assets. That mentality switch produced the lowest investments into cryptocurrency assets since October 2020, with no real reasoning behind it.
So, the next significant market change is likely to come from influxes of people looking into new tokens or cryptocurrency as a whole and buying in. That may push the current investors and HODLers into increasing their total supply percentage hoping for an increase in price similar to those a year ago.