Glassnode’s on-chain data reveals that 96.9% of Bitcoin short-term holders are making a profit after the cryptocurrency’s rally past $30,000. Short-term holders are defined as investors who have held their coins for less than 155 days. These holders are considered weak hands and more likely to sell at the first sign of fear, uncertainty, and doubt (FUD) or profit-taking opportunities. In contrast, long-term holders, known as “diamond hands,” have a strong conviction and are less likely to sell. The recent surge in Bitcoin’s price has resulted in significant profits for short-term holders, increasing the risk of mass selling. Glassnode tracks this profit through a metric called “percent supply in profit,” which calculates the percentage of the total Bitcoin supply with unrealized gains. The chart provided shows the trend of this metric for short-term holders over the years. The recent rally has caused a revival in the metric, reaching 96.9%. Similar spikes in the past have coincided with market tops and potential drawdowns. However, it is uncertain whether the current rally will be affected, as previous instances of this pattern have not always resulted in a slowdown in price growth. The market’s ability to absorb profit-taking at current price levels or the possibility of a pullback remains to be seen. As of now, Bitcoin is trading around $30,200, representing a 15% increase in the last week.
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