Bitcoin

According To Glassnode, Short-term Bitcoin Purchases Become Long-Term Bitcoin Holders

Despite the fact that long-term Bitcoin sales increased significantly last week, HODLing remains the recommended approach as more short-term supply becomes long-term supply.

Long-term Bitcoin investors have boosted their spending to a level that signals they are de-risking the market, but hodling remains the most popular investment technique.

According to data from blockchain analytics firm Glassnode, uncertain macroeconomic conditions are likely to have prompted a rise in long-term investors’ sell-offs last week, as well as shook some short-term holders out of their investments. Coins older than six months contributed for 5% of overall expenditure last week, a figure not seen since November last year.

The number of short-term holders (STH) who have held coins for less than 155 days continues to drop, but this is not due to selling. While it is more normal for STH to be sold, Glassnode believes that the current drop in STH supply “can only happen when huge chunks of the coin supply are dormant and reaching the 155-day age barrier, becoming Long-Term Holder supply.”

As long as general sale pressure remains persistent, Bitcoin (BTC) accumulation patterns do not reflect bear market behavior. Moreover, despite the current surge in selling, more than 75% of the BTC circulating supply has been dormant for at least six months. This, according to Glassnode, indicates that investors are still primarily hodlers.

Long-term Bitcoin holders increased selling last week. – Glassnode

The sell-offs have occurred in a very solid market that has avoided any large swings up or down and has been range-bound for the majority of this year, according to Glassnode. This is supposed to be a means of delaying the end of a bear cycle’s surrender event. According to CoinGecko, there hasn’t been a big surrender since last May, when the price of bitcoin fell from $58,771 to $34,977 in a 15-day period.

The last time Bitcoin accumulation approximated bear market behavior was from the May capitulation event to October

BTC accumulation patterns are still above bear market trends. – Glassnode

STH supply’s profit/loss ratio is still close to the all-time low achieved in mid-2021. Currently, 82 percent of STH coins are being held at a loss, according to Glassnode, which indicates that the market is nearing the end of a bear market, when savvy investors put their coins to cold storage to wait for profit margins to improve.

Short-term holders are in near-record losses. – Glassnode

Exchange outflows continue significant, as mentioned in last week’s BTC market update. Last week, Coinbase experienced its largest withdrawals in over five years, with 31,130 BTC exiting the platform. These outflows reflect Bitcoin’s growing popularity as a must-have asset in a modern investor’s portfolio, as well as a growing reluctance to liquidate in a hurry.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

XRP Price Prediction: Signs Emerge For Rally To $12 While Altcoin Rival Readies For 40,000% Rally In 4 Weeks

XRP price signs a breakout to $12 as the spotlight turns to altcoin rival, WallitIQ…

2 hours ago

Missed ICO of Avalanche? Here’s What You Need to Know and Why This Crypto Coin Could Be Your Next Best Investment

For those who missed the initial coin offering (ICO) of Avalanche, it’s a reminder of…

3 hours ago

Indiana Farmer Struck a Windfall with DogWifhat, Now Goes All in on BlockDAG as BULLRUN100 Bonus Goes Live

Indiana Farmer Struck a Windfall with DogWifhat, Now Goes All in on BlockDAG as BULLRUN100…

3 hours ago

Tether Completes The First USDT Oil Transaction in Middle East

Tether completes the first USDT oil transaction in the Middle East, funding a $45 million…

4 hours ago

Celebrating the Success of Zircuit’s ZRC EigenLayer Fairdrop

George Town, Grand Cayman, 8th November 2024, Chainwire

4 hours ago

BIO Protocol, DeSci sector, invested by Binance Labs

Binance Labs makes its first foray into decentralized science (DeSci) with an investment in BIO…

5 hours ago

This website uses cookies.