Long-term bitcoin investors have held their bitcoins in recent weeks despite speculators fleeing the market, according to data from cryptocurrency exchange Coinbase.
David Duong, director of institutional research at Coinbase, said in a monthly outlook released on Tuesday that the recent bitcoin sell-off was almost entirely caused by short-term speculators.
Investors still holding Bitcoin is a positive sentiment indicator, ensuring supply and demand balances as speculators sell, a common feature of bear markets, Duong said.