Bitcoin investors with $68,000 entries sold at a loss. The analytics firm Glassnode touches on this in a report that examines the actual price breakdown by unspent transaction output (UTXO) on the Bitcoin network and shows the distribution of supply at the final price. The data allows us to see which Bitcoin investors are profiting or losing. As Kriptokoin.com, we provide the details…
Glassnode: Transfer of Bitcoin from weak to strong hands
Many investors bought BTC between May 10, 2021 and August 21, 2021, with prices ranging from $ 54,000 to $ 60,000. However, when the big market slump began, many raced to divest their rapidly declining investments. The sales period was 71 days. The trades are called “Bitcoin transfers from weak to strong hands” by Glassnode analysts. This is because short-term traders sell BTC to long-term traders.
BTC price once again surpassed $60,000 in November 2021, reaching the ATH level of $68,789. Since November of last year, the Bitcoin price has been falling incrementally; Short-term investors who buy over $60,000 worth of BTC are selling to long-term investors in a 138-day sell phase. Glassnode analysts interpret the on-chain metrics as follows:
This behavior reveals a market dominated by price-independent investors who refuse to sell their cryptocurrencies even if they are losing money. Ordinary buyers have largely disappeared from the market; market shares are currently significantly lower than in May-July 2021.
Analyzes reveal different results
First, long-term BTC investors do not sell no matter how long the downtrend lasts; and secondly, the Bitcoin market, after wiping out ordinary buyers, could rise again as the current downtrend lasted 138 days, whereas the downtrend from November to August 21 was half as long. Despite the drop, Bitcoin is being removed from bullish exchanges as it restricts serious selling. Here’s what Glassnode analysts say about this:
Despite the extremely uncertain macroeconomic and geopolitical factors, the behavior of Bitcoin investors shows very positive confidence. Cryptocurrencies are still being bought off exchanges, moving into increasingly illiquid wallets, and aging rapidly into the old age groups. Cryptocurrencies appear to be Long Term Holders in the making.
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