As a seasoned crypto investor with a decade of experience under my belt, I find myself both intrigued and not surprised by the latest developments in the Bitcoin market. The fact that long-term holders (LTHs) have locked in over $2 billion in profit in just one day is a testament to the volatile yet profitable nature of this digital asset.
In a single day, Bitcoin (BTC) long-term investors have secured more than $2 billion in profits, yet there are many who choose not to cash out their BTC.
This past week, as I was perusing the latest issue of Glassnode’s “The Week Onchain” newsletter, I came across some intriguing insights about the divide among Bitcoin investors often referred to as the “diamond hands.
Bitcoin LTHs “potentially waiting for higher prices”
Investors in Bitcoin have witnessed substantial increases in potential earnings as the value of Bitcoin surged towards nearly $100,000, meaning they haven’t yet realized or cashed out their profits.
In recent times, speculators have faced numerous situations where they were forced to sell their assets (liquidation events). However, experienced investors (old hands) are now choosing to reduce their risk by selling coins that they’ve held for a long time. As per CryptoMoon’s latest report, on November 22 alone, there was a record $443 million in profits realized across the entire investor base.
As a seasoned crypto investor, I’ve noticed a growing apprehension about potential sell-offs outpacing fresh investments, particularly from upcoming US spot Bitcoin ETFs. However, delving deeper into the data provided by Glassnode, it appears that the long-term Bitcoin veterans like myself are less inclined to diminish our Bitcoin holdings.
After noticing an increase in profits among long-term holders, we can delve deeper into our analysis by examining the types of supplies they are selling,” it was stated.
By studying the total profits accumulated over time, broken down by age groups, researchers found that the majority of profit-making activities have primarily occurred among entities holding coins for a period between 6 and 12 months.
As an analyst, I’m reporting that coins that are around 6 months to a year old are significantly influencing the current market selling trend, comprising approximately 35.3% of the total supply.
“The dominance of coins aged 6m-1y highlights that the majority of spending has originated from coins acquired relatively recently, highlighting that more tenured investors are remaining measured and potentially waiting patiently for higher prices.”
One theory as to the identity of such investors involves institutional buyers “who accumulated after the ETFs launch and planned to ride only the next market wave higher.”
ETF, MicroStrategy investors get reality check
The ETFs themselves show continued sensitivity to short-term BTC price fluctuations.
It appears that the recent two trading days have resulted in a total withdrawal of funds exceeding $550 million.
Back then, I witnessed a significant drop in the BTC/USD pair from close to record highs at approximately $99,000 down to roughly $90,800. Both CryptoMoon Markets Pro and TradingView corroborated this decline for me.
Investors who specialize in equities experienced a similar squeeze as they expanded their holdings in MicroStrategy, the company known for having the most significant Bitcoin reserves within corporations.
Mastercard (MSTR) dropped by 35% following one of its most severe four-day decline phases ever since its high on November 21st. Despite this, it continued to accumulate Bitcoin (BTC) reserves.
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2024-11-27 11:52