Since November 2023, long-term investors have withdrawn approximately 148,000 BTC from wallets. According to Glassnode, this trend indicates the start of profit-taking by this market segment.
#Bitcoin investors have been rewarded for their patience and conviction, with BTC prices rallying to multi-year highs above $50k.
The volume of supply held at a loss is also thinning quickly, with just 13% falling into this category.
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— glassnode (@glassnode) February 13, 2024
Some of the funds may have been moved into one of the approved ETF, while others were spent, experts highlighted.
To the aforementioned amount, 151,500 BTC associated with the GBTC should be added.
As a result, since the peak in November last year (14,996,000 BTC), the total number of coins held by hodlers has decreased by 299,500 BTC. Experts explained that such behavior becomes typical as the market approaches the ATH.
At the time of writing, only 13% of bitcoins were “at a loss” for their owners, typically long-term holders. The chart below shows the price structure of acquired bitcoins. The majority is concentrated in the range of $40,000 to $45,000.
Among hodlers, only 6.5% of the total number of coins had an unrealized loss (777,800 BTC). Analysts noted that previous similarly low values were associated with the early stage of a bull market (with the exception of 2019).
For short-term investors, the recent “sell the news” wave following the ETF approval led to a drop in the share of “profitable” coins from 100% to 57.5%. This may have increased bearish pressure due to prices falling below the purchase price.
Experts noted that such pullbacks often form local lows within medium-term upward trends.
The share of “loss-making” coins among speculators did not exceed the 60% threshold, allowing the downward trend to be classified as a typical correction. The situation differs from a market “overloaded” with longs, where a price drop can become more prolonged.
Earlier, ahead of the rally, billionaire Peter Thiel’s Founders Fund purchased the first and second cryptocurrencies for $200 million.
Previously, ForkLog reported that bitcoin options traders placed bets on the digital gold’s price returning to its all-time high in the second quarter.