Long-term Bitcoin holders are currently holding large amounts of BTC at a loss. However, according to on-chain analysts at Glasnode, this metric may be misleading. Here are the key details.
Long-Term Bitcoin Holders on the Rise
Recent data shows that the ratio of long-term holders to short-term holders in Bitcoin’s supply has risen to 5.4, marking the highest level since mid-2021. Interestingly, there is a notable increase in the number of long-term holders currently at a loss. Glasnode analysts suggest this is because BTC purchased near the all-time high of $73,000 has now crossed the 155-day threshold, causing these investments to mature.
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Analysts also found that this group of long-term holders now represents 47.4% of all coins held at a loss. Despite this, Glasnode analysts highlight that the overall magnitude of the losses remains relatively small. “This means that while many ‘top buyers’ are technically at a loss, the scale of the portfolio drawdowns is relatively minor, indicating minimal financial pressure,” they noted.
Glasnode considers this observation constructive. Based on historical patterns, it suggests that Bitcoin holders may have entered a “re-accumulation” phase.
Last week, Bitcoin dropped by 6.36%, an unexpected start to October, a month typically favorable for Bitcoin. As of this writing, Bitcoin is trading at $61,300 with a daily trading volume of around $34 billion. Glasnode’s analysis suggests that the losses experienced by long-term holders could be misleading and may have minimal impact on the market. This signals that Bitcoin could be entering another accumulation phase, offering important insights for investors. Maintaining long-term investments and analyzing market trends will be crucial for future decision-making.
Bitcoin, long-term holders, accumulation phase, market trends, financial pressure
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