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The market has seen choppy and flat price action, yet Long-Term Holders (LTH) remain unfazed, continuing to HODL and accumulate Bitcoin (BTC) instead of selling, according to the latest report by analytics firm Glassnode.
At the same time, Short-Term Holders (STH) were on the losing end of the market downturn, though certain metrics suggest an overreaction.
Meanwhile, the Bitcoin market dominance has continued to increase.
Glassnode researchers stated that there is a notable slowdown in LTH spending.
Instead, their supply is currently increasing – and fast.
It is evident that “HODLing behavior is significantly outpacing spending behavior,” the report argued.
Moreover, Long-Term Holders have been locking in “a reasonably consistent” $138 million in profit a day.
Analysts noted that this LTH sell-side pressure is “a read for the daily capital inflows required to absorb supply and keep prices steady.”
Accordingly, despite the choppy market conditions, “prices are generally flat over the last few months, suggesting a form of equilibrium is being reached.”
Furthermore, the team looked into the metric known as the Realized Profit / Loss Ratio.
They found that, despite dropping from its peak, the metric remains high.
Based on this, the report concluded that long-term investors are “in the process of cooling off profit-taking activities.”
Meanwhile, the metric declined to similar levels in earlier cycles before the renewed price rise.
“From the perspective of Long-Term Holder SOPR, we can see that coins are locking in an average profit margin
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