Insights from crypto analytics firm Glassnode show that Bitcoin investors remain unfazed despite the huge drawdown that sent Bitcoin plummeting more than 50% in May.
Glassnode He says its 324,600 followers that recent on-chain metrics suggest that many BTC exchanged hands during the May correction and that long-term holders, or investors who have kept their Bitcoin idle for at least five months, are not spooked by 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 BTC supply was spent in the last 5 [months] and returned to profit at the recent high of $ 52,800. Long-term holders now own 79.5% of the BTC supply, equivalent to October 2020.
This suggests that many coins changed hands during the recent consolidation in the $ 29k to $ 40k range. It also indicates that BTCs purchased in the first quarter to the second quarter of 2021 are holding firm, and investors are not affected by a reduction of more than 50%. “
Glassnode also takes a look at the September 7 dive and notes that investors who bought between $ 45,800 and $ 52,600 continue to hold onto their coins even though their positions are currently under water.
“During yesterday’s sell-off, more than 10.3% of the Bitcoin supply went from having an unrealized gain to now having an unrealized loss. This indicates that around 1.94 million BTC has an on-chain cost of between $ 45,800 and $ 52,600. “
Popular analyst Will Clemente is also following the BTC chain trends. According to Clemente, more than 90% of the existing supply of Bitcoin has lain dormant in the last month despite BTC’s price swings.
“93% of the Bitcoin supply has not moved in at least a month. This is a historical record. Just another metric that shows how optimistic the supply dynamics is. “
Don’t miss a moment – sign up for email crypto alerts delivered directly to your inbox
Follow us Twitter, Facebook and Telegram
Browse Hodl’s Daily Mix
Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock / R_Tee