Not-So-Diamond-Hands: Bitcoin Long-Term Holders Have Shed 150k BTC Since LUNA Crash
August 18 2022 - 3:00PM
NEWSBTC
Data shows the total supply held by the Bitcoin long-term holders
has decreased by 150k BTC since the LUNA crash. Bitcoin Long-Term
Holders Have Dumped A Noticeable Amount In The Last Few Months
According to the latest weekly report from Glassnode, the BTC LTHs
have observed a sustained decrease of 150k BTC since the crash in
May. The “long-term holder” (or LTH in brief) group is the Bitcoin
cohort that includes all those investors who have been holding onto
their coins since at least 155 days ago, without selling or moving
them. The holders who sell earlier than this threshold are called
the short-term holders (STHs). LTHs are generally the most resolute
investors in the market and thus large selling from them doesn’t
happen too often. Generally, the more amount of time a holder has
held their coins for (that is, the more aged the LTH has become),
the less likelier they become to sell at any point. Here is a chart
that shows the trend in the total Bitcoin supply held by these LTHs
during the past year: The value of the metric seems to have been
trending downwards in recent months | Source: Glassnode's The Week
Onchain - Week 33, 2022 As you can see in the above graph, the
Bitcoin supply owned by LTHs seems to have been mostly moving
sideways since around November of last year. The indicator set a
high during the month of May of this year, but since then the
metric’s value has been on a steady decline. Related Reading:
Bitcoin And Ethereum Retrace Before Crypto Sentiment Could Reach
“Greed” The beginning of this sell-off from the LTHs seems to have
been around the LUNA and UST collapse, an event that triggered a
market-wide crash in crypto. The report notes that the current
155-day long-term holder threshold lies in March, when the price of
Bitcoin observed its first relief rally to $46k since the decline
from the all-time high. While the latest selling from the LTHs
amounts to just 150k BTC, which is quite small compared to their
total supply of around 13.4 million BTC, the report explains that
the LTH reserve doesn’t have to significantly decrease for the
cohort to go through a capitulation event. Related Reading:
Flippening Forewarning? Ether Options Overtake Bitcoin As The Top
Crypto To Trade In past such capitulations, the LTH supply has only
slightly decreased with the weakest investors being eliminated, and
stronger accumulation filling up for them. BTC Price At the time of
writing, Bitcoin’s price floats around $23.4k, down 4% in the past
week. Looks like the value of the crypto has been going down in the
last few days | Source: BTCUSD on TradingView Featured image from
Dmitry Demidko on Unsplash.com, charts from TradingView.com,
Glassnode.com
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