Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit
June 07 2022 - 2:00PM
NEWSBTC
Latest data from Glassnode shows Bitcoin long-term holders
currently own around 90% of the total supply in profit. Bitcoin
Supply In Profit Share Of Short-Term Holders Declines According to
the latest weekly report from Glassnode, dominance of long-term
holders has observed rise recently. The relevant indicator here is
the “supply in profit,” which measures the total number of coins
that are currently holding a profit in the Bitcoin market. The
metric works by checking the on-chain history of each coin to see
what price it was last sold at. If this previous price was less
than the current one, then the coin has now accumulated some
profit. Related Reading | Bitcoin Bullish Signal: 1k-10k BTC
Holders Have Been Buying Recently On the other hand, the last
selling price being more than the latest value of the crypto would
suggest the coin is holding a loss at the moment. The supply in
profit indicator naturally only measures the former type of coins.
Now, here is a chart that shows what percentage of this supply in
profit is owned by the long-term holders (LTHs): Looks like the
value of the indicator has observed some rise recently: Source:
Glassnode's The Week Onchain - Week 23, 2022 LTHs only include
those investors who have held their Bitcoin since at least 155 days
without selling or moving them. The cohort that has been holding
since days less than this threshold are called the “short-term
holders” (STHs). As you can see in the above graph, it seems like
in the last few weeks the percentage of the supply in profit owned
by LTHs crossed the 90% mark. This means that the share of STHs
shrunk below 10%. Related Reading | Bullish: Bitcoin Marks
First Green Weekly Close After Two Months In The Red Such values of
the indicator have also been seen a few times before in the history
of the crypto. Usually, those previous instances have taken place
during late-stage bear market periods. The report notes that at
these values the short-term holders are nearly at a peak pain level
as they hold almost no unrealized profits. If this past trend is
anything to go by, then the current LTH supply in profit of around
90% may be a sign that the crypto has started to enter into a late
bear market. BTC Price At the time of writing, Bitcoin’s price
floats around $29.5k, down 6% in the last seven days. Over the past
month, the crypto has lost 18% in value. The below chart shows the
trend in the price of the coin over the last five days. The price
of the crypto seems to have observed a sharp plunge down over the
past day | Source: BTCUSD on TradingView Featured image from
Unsplash.com, charts from TradingView.com, Glassnode.com
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