Bitcoin Long-Term Holders Own 90% of Supply at Profit


The latest data from Glassnode shows that long-term holders of Bitcoin currently own around 90% of the total supply in profit.

Bitcoin Supply in Short-Term Holders Profit Share Declines

According to the latest weekly report from Glassnode, the dominance of long-term headlines has increased recently.

The relevant indicator here is the “bid in profit”, which measures the total number of coins that are currently in profit on the Bitcoin market.

The metric works by checking the on-chain history of each coin to see what price it was last sold for. If this previous price was lower than the current price, then the coin has now accumulated some profit.

Related Reading | Bitcoin bullish signal: 1k-10k BTC holders have been buying recently

On the other hand, if the last selling price is higher than the most recent value of the cryptocurrency, it would suggest that the coin is at a loss right now.

The supply indicator in profit naturally only measures the above type of coins. Now, here is a chart showing what percentage of this supply in earnings is owned by long-term holders (LTH):Bitcoin long-term holder supply in profit

Looks like the value of the indicator has observed some rise recently: Source: Glassnode's The Week Onchain - Week 23, 2022

LTH only includes those investors who have held their Bitcoin for at least 155 days without selling or moving it. The cohort that has been retaining since days less than this threshold is called “short-term starters” (STH).

As you can see from the chart above, it seems that in the last few weeks the percentage of the offer in benefit of LTH has surpassed the 90% mark. This means that the proportion of STH was reduced below 10%.

Related Reading | Bullish: Bitcoin Marks First Green Weekly Close After Two Months in the Red

Such indicator values ​​have also been seen a few times before in crypto history. Typically, those earlier instances have taken place during late-stage bear market periods.

The report notes that in these securities, short-term holders are almost at maximum pain level as they have almost no unrealized gains.

If this past trend is taken into account, then the current LTH supply gaining around 90% may be a sign that the crypto has started to enter a late bear market.

BTC price

At the time of writing, the price of Bitcoin is hovering around $29,500, down 6% over the past seven days. Over the last month, the cryptocurrency has lost 18% in value.

The chart below shows the trend in the price of the coin for the past five days.

Bitcoin price chart

The price of the crypto seems to have observed a sharp plunge down over the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *