Bitcoin long-term holders are back in profit following the flagship crypto’s recent price surge. However, the same can’t be said for most short-term holders yet, given the levels at which they purchased their Bitcoin holdings.
Only 0.03% Of Long-term Bitcoin Holder Supply In Loss
In a recent market report, on-chain analytics platform Glassnode claimed that the total volume of long-term holder (LTH) supply held in loss is “negligible,” with only 4,900 BTC (0.03% of LTH) acquired above Bitcoin’s current price. These long-term holders in loss are said to have been those who bought the 2021 cycle top and have held since then.
Related Reading
Long-term holders currently account for over 85% of the Bitcoin supply in profit. Glassnode noted that this was to be expected, given that the LTH supply in loss during the euphoric phase of the bull market “tends towards zero.” Therefore, this LTH will keep accounting for most of the supply in profit as the bull run progresses.
Tokens held for more than 155 days fall under this LTH supply, although most investors in this category are likely those who held with high conviction throughout the last bear market, even as Bitcoin dropped below $20,000. Back then, this LTH supply accounted for most of the unrealized losses.
Short-Term Holder Supply Accounts For Most Unrealized Loss
Glassnode revealed that the short-term holder (STH) supply currently accounts for most of the market losses as these investors continue to buy the flagship crypto near local and global highs. As such, these holders automatically fall back into a loss whenever Bitcoin encounters a price correction.
Data from Glassnode shows that 1 million BTC (26.6%) out of the 3.35 million BTC representing the STH supply are currently at a loss. An overwhelming 56% (1.9 million BTC) of the STH supply is said to have moved into an unrealized loss when Bitcoin recently experienced a price drawdown to the $58,000 level.
Related Reading
Glassnode also revealed that a “significant cluster” of STH coins was accumulated close to the current spot price. This is significant considering how investors who invested in this region could react to any volatile price fluctuations, irrespective of what direction they take. A significant drop or increase in Bitcoin’s price could lead these investors to offload their tokens.
Besides these short-term holders, Glassnode suggested that the ‘Single-Cycle holders’ are another group of investors to keep an eye on. These investors have been holding a “significant magnitude of unrealized profit” since Bitcoin broke above the $40,000 range. They already took some profits when Bitcoin hit its current all-time high (ATH) of $73,000 in March and will likely offload more of their tokens as Bitcoin reaches a new ATH.