Long-term holders realize all of the profit and none of the losses

Share This Post

Bitcoin’s volatility in the past week created the perfect market conditions for analyzing the behavior difference between long-term and short-term holders. Previous CryptoSlate reports highlighted the importance of these two cohorts and how their actions influence the market.

Between June 28 and July 3, Bitcoin’s price fluctuated between $60,000 and $62,000. It failed to find support on July 4, dropping below $60,000 in late US hours. While this timeframe and volatility might not seem significant, they provide a perfect backdrop to understand how each portion of the market moved.

With Bitcoin’s price struggling to leave $60,000 on June 28, short-term holders spent 186,945 BTC in loss. This sharply contrasts with long-term holders, which showed a minimal loss volume of just above 61 BTC. As Bitcoin regained some strength at $62,000, STHs showed a notable drop in spent volume in loss to 34,642.

The brief period of reduced losses showed a short moment of confidence, with STHs most likely anticipating further growth. However, by July 3, the spent volume in loss for STHs climbed to 119,623 BTC, showing a resurgence of selling pressure.

During this period, STHs accounted for over 99% of the spent volume in loss. In contrast, the percentage of spent volume in loss from LTHs ranged from 0.033% to 0.589%. Such a low percentage shows how unlikely long-term holders are to sell their BTC at a loss compared to short-term holders.

long-term holder short-term holder spent volume in loss
Graph showing the total volume spent in loss for long-term and short-term holders from June 21 to July 3, 2024 (Source: Glassnode)

Transfer volumes from STHs in loss to exchanges show how much of that spent volume ended up on exchanges. On June 28, a high of 18,861 BTC was transferred, showing panic and urgent liquidity needs among STHs.

This volume dropped significantly over the following days, reaching a low of 3,178 BTC on June 30, reflecting a temporary reduction in selling pressure in spent volume. The subsequent increase to 15,980 BTC on July 3 aligns with the observed increase in spent volumes in loss and declining prices, further confirming an increase in selling pressure.

STH in loss to exchanges
Chart showing the total amount of coins transferred from short-term holders in loss to exchange wallets from June 28 to July 3, 2024 (Source: Glassnode)

The disparity between LTHs and STHs is also evident in the difference in realized profit. The realized profit percentages from long-term holders are significantly high, often exceeding 80% during this period and reaching up to 93.91% on July 3. On June 28, LTHs realized substantial profits of $348.708 million, contrasting with STHs’ modest $54.773 million.

Interestingly, on July 1, both groups realized significant profits, with STHs at $201.597 million and LTHs at $279.358 million, coinciding with a peak Bitcoin price of $62,833. This suggests that both cohorts seized the opportunity to lock in gains at this price peak.

realized profit long-term holders short-term holders
Graph showing the realized profit for long-term holders (blue) and short-term holders (red) from June 28 to July 3, 2024 (Source: Glassnode)

This data paints a clear picture of the difference in behavior and strategies of these cohorts. Short-term holders show extremely reactive behaviors, quickly adjusting their positions and offloading significant volume based on immediate market changes.

Long-term holders, on the other hand, show a more strategic and calculated response. The disparity in their behavior shows a market in a state of flux, with price movements and volumes showing a combination of profit-taking and loss-mitigation strategies.

The post Long-term holders realize all of the profit and none of the losses appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Crypto Trading Bots Can Now Be Developed in Hours With SoftMine’s AI Software Dev Tool

This content is provided by a sponsor Crypto is a world of cycles – From the market peaks and troughs, to the shifts in investor tastes, we truly reside in a cyclical environment Each and every

How to Buy JetBolt ($JBOLT) – The Updated Detailed Guide

The post How to Buy JetBolt ($JBOLT) – The Updated Detailed Guide appeared first on Coinpedia Fintech News Looking for the next game-changer in crypto The rising altcoin star JetBolt ($JBOLT)

3 Reasons FXGuys Is the Next Big Crypto To Outshine Solana and TRON (TRX)

The post 3 Reasons FXGuys Is the Next Big Crypto To Outshine Solana and TRON (TRX) appeared first on Coinpedia Fintech News The next big crypto to outshine giants like Solana (SOL) and TRON (TRX) has

Steak ‘n Shake Teases Bitcoin Payments Again

On March 7, fast food chain Steak ‘n Shake posted a question on X asking, “Should Steak ‘n Shake accept bitcoin” The post received a slew of responses from many well-known

Crypto Millionaire Who Grew His Portfolio 17000% with Dogecoin and Floki Inu Names 5 Undervalued Coins Set to Pump In 2025

The post Crypto Millionaire Who Grew His Portfolio 17000% with Dogecoin and Floki Inu Names 5 Undervalued Coins Set to Pump In 2025 appeared first on Coinpedia Fintech News Spotting the next major

Crypto Market Falls 28% – Here’s Why Smart Money Is Buying the Dip

The post Crypto Market Falls 28% – Here’s Why Smart Money Is Buying the Dip appeared first on Coinpedia Fintech News The digital asset landscape has experienced a notable 28% contraction from