Short-term Bitcoin Investors Get Earnings After the Pump: Glassnode

Some Bitcoin investors are selling while they could after the underlying cryptocurrency reclaimed $23,000 earlier this month, according to Glassnode.

The blockchain intelligence provider’s latest report examines recent on-chain behavioral patterns exhibited by both short- and long-term holders.

Quit while they can

the the newsPublished on Monday, it begins with an examination of the Bitcoin price, which retrieves “multiple on-chain pricing models.”

One model involves the investor price – which reflects the average acquisition price of all coins spent and distributed by bitcoin miners. After beating this $17,400 pattern, the average miner has returned to the profitability position.

The move also put many people’s bitcoins back into profit territory, as the bid-in-profit ratio increased from 55% at $16,000 to 67% at $23,100. This was one of the biggest spikes in Bitcoin’s profitability during a bear market that has ever occurred.

Glassnode stated that movements in this metric can be helpful in determining when the market will recover. However, moves of this magnitude are also encouraging bitcoin holders who have returned to profit to start posting some of their gains.

In particular, the share of short-holders returned in earnings above 97.5% – as investors tend to “take a chance and exit at break-even or profit”.

“Given this significant increase in profitability, the potential for selling pressure from short-term holders is likely to increase accordingly,” says Glassnode.

The data is already showing this: increased trading volume among short-term bitcoin holders (those whose coins last moved less than 6 months ago) has outpaced the long-term downtrend. MinerThey also sold out on the rally.

“Therefore, the sustainability of the current rally can be seen as a balance between inflows and newly distributed demand, and meeting the supply that has been withdrawn from investors’ portfolios due to these higher prices,” Glassnode continued.

Long-term carrier

While short-term holders are selling, the number of coins that haven’t moved in more than 6 months is growing by 100,000 BTC per month. This means that HODLers’ convictions remain strong, even in the midst of a market rally.

At current prices, the long-term average cardholder is at almost zero, which means that his coin is at the same price at which he bought it.

Last week, Glassnode pointed out Bitcoin’s increased volatility this month could signal the beginning of a cyclical bull market.

Short-Term Bitcoin Investors Earn After Pump: Glassnode Appears First on CryptoPotato.

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