Delphi Digital has returned with another installment of its unspent transaction output (UTXO) reports. Recalling its report from January of this year, the research firm says bitcoin’s market cycle is right on track. The prior report called Q1 as the bottom of the bear market, and this claim was later corroborated by Adamant Capital’s own evaluation.As before, Delphi Digital’s evaluates UTXOs as presages of market buying and selling, and by extension, the future trajectory of the market. UTXOs is a technical way of describing the last time bitcoin was moved by looking at the last block a transaction was included in.“UTXO age distribution over time provides insight into the buying and selling patterns of previous market cycles. This allows us to forecast where we are in relation to prior cycles and what we can likely expect going forward,” the report states.Bottom In?The starkest finding in the report is Delphi Digital’s belief that “bitcoin has bottomed,” consistent with its prior analysis.Going on the assumption that the bottom occurred in December at roughly $3,200, “the 1 Year + holder rate was 53.9% at the time, which falls right in line with the 1 year+ holder rate of 53.5% during the price bottom of the previous cycle in January 2015.”In a nutshell, this means fewer long-term holders are selling. As price rises, long-term holders move coins to sell, the coins change hands and the number of 1+ year UTXOs falls; as prices...
