Bitcoin Investors Are ‘Unshaken’ by Large BTC Drawdown, Says Crypto Insights Firm Glassnode
Insights from crypto analytics firm Glassnode are showing that Bitcoin investors remain unfazed despite the huge drawdown that saw Bitcoin plummet over 50% in May.
Glassnode tells its 324,600 followers that recent on-chain metrics suggest that a lot of BTC swapped hands during the May correction and that long-term holders, or investors who have kept their Bitcoin dormant for at least five months, are not spooked by the volatility.
“The relative supply held by LTH (long-term holders) and STH (short-term holders) tells us an interesting story about Bitcoin:
Over 16.8% of the BTC supply was spent in the last 5 [months] and returned to profit at the recent $52,800 high. Long-term holders now own 79.5% of the BTC supply, equivalent to Oct 2020.
This suggests that many coins changed hands during the recent consolidation in the $29k to $40k range. It also indicates BTC purchased in Q1 to Q2 2021 remain tightly held, with investors unshaken by a 50%+ drawdown.”
Glassnode also takes a look at the September 7th dip and notes that investors who bought between $45,800 to $52,600 continue to hold on to their coins even though their positions are currently underwater.
“During yesterday’s sell-off, over 10.3% of the Bitcoin supply transitioned from holding an unrealized profit to now holding an unrealized loss. This indicates that around 1.94M BTC have an on-chain cost basis between $45,800 and $52,600.”
Popular analyst Will Clemente is also following the on-chain trends of BTC. According to Clemente, over 90% of Bitcoin’s existing supply has remained inactive in the last month in spite of BTC’s wild price swings.
“93% of Bitcoin’s supply hasn’t moved in at least a month. This is an all-time high. Just another metric showing how bullish supply dynamics are.”
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Author: Daily Hodl Staff
