Bitcoin price rising to $71,000 causes all long-term holders to gain, but what about short-term holders?

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Long-term Bitcoin holders returned to profits after flagship cryptocurrencies recent price escalate. However, the same cannot be said for most short-term holders, given the levels at which they purchased their Bitcoin holdings.

Only 0.03% of the long-term supply of Bitcoin holders results in a loss

At a recent fair reporton-chain analytics platform Glass knot claimed that the total size long-term holder (LTH) delivery. the loss is “negligible” – only 4,900 BTC (0.03% LTH) were purchased above the current Bitcoin price. These long-term loss holders are said to be those who bought into the top of the cycle in 2021 and have held that position since then.

Source: X

Long-term holders are currently generating over 85% of the profits from the Bitcoin supply. Glassnode noted that this was to be expected, given that LTH supply losing during the euphoric phase of the bull market is “heading to zero.” Therefore, this LTH will continue to account for the majority of the profit supply because the running of the bulls is progressing.

Bitcoins 1
Source: X

Tokens held for over 155 days fall within this LTH supply, although most investors in this category are likely those who have held with high confidence throughout the entire period last bear market, even as Bitcoin dropped below $20,000. At that time, LTH supplies accounted for most of the unrealized losses.

Brief-term holder supply accounts for most unrealized losses

Glassnode has revealed that the supply of short-term holders (STH) is currently responsible for the majority of market losses as these investors continue to buy flagship cryptocurrencies close to local and global summits. Therefore, these holders automatically suffer a loss whenever Bitcoin encounters a price adjustment.

Data from Glassnode shows that 1 million BTC (26.6%) of the 3.35 million BTC representing CPK supply is currently affected by the loss. An overwhelming 56% (1.9 million BTC) of the STH supply is said to have suffered unrealized loss as Bitcoin recently experienced a price decline to the level of $58,000.

Glassnode also revealed that it has accumulated a “significant group” of STH coins at a price close to the current spot price. This is crucial considering how investors who have invested in this region might react to it variable price fluctuationsregardless of what direction they choose. A significant drop or escalate in the price of Bitcoin could prompt these investors to dump their tokens.

In addition to these short-term bond holders, Glassnode suggested that “single-cycle bond holders” are another group of investors worth paying attention to. These investors have been holding a “significant amount of unrealized profit” since Bitcoin breached the $40,000 mark. They have already made some profits when Bitcoin reached its current level highest level ever (ATH) it was $73,000 in March and will likely offload more of its tokens as Bitcoin reaches a modern ATH.

Bitcoin price chart from Tradingview.com
BTC price drops to $70,000 | Source: BTCUSD on Tradingview.com

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