Bitcoin Short-Term Holders Are Selling, While Long-Term Holders Are Still Quiet
According to analyst James V. Straten, short-term holders of Bitcoin are currently engaging in a significant profit-taking event. Short-term holders refer to investors who have held their coins for less than 155 days, while long-term holders are those who have held them for longer. Typically, short-term holders are more likely to sell during periods of fear or excitement in the market, while long-term holders tend to hold onto their coins. The recent rally in the price of Bitcoin has led to an increase in profit-taking by short-term holders, as seen by the volume of coins being transferred to exchanges.
The Scale of Profit-Taking is Significant
An analysis of the data shows that short-term holders in profit have been sending large amounts of Bitcoin to centralized platforms during the recent rally. This indicates a significant level of profit-taking from this group. While it is not uncommon for short-term holders to sell during rallies, the scale of this profit-taking event is noteworthy. Despite this selling pressure, Bitcoin has managed to maintain its price above $34,000.
Long-Term Holders Remain Steadfast
In contrast to short-term holders, long-term holders have not sold much of their Bitcoin during the rally. This is consistent with their behavior as persistent and strong holders of the cryptocurrency. The metric tracking long-term holder transactions is currently at its sixth-largest value for the year, but the scale of selling from this group is still relatively low.
BTC Price
As of now, Bitcoin is trading at around $34,700, showing a 13% increase in the past week.
Hot Take: Bitcoin Shows Resilience Despite Profit-Taking
Despite significant profit-taking from short-term holders, Bitcoin has demonstrated strength by holding its price above $34,000. This indicates that there is strong demand for the cryptocurrency even in the face of selling pressure. The behavior of long-term holders, who have remained steadfast during the rally, further reinforces the confidence in Bitcoin’s value. While profit-taking events are expected during price rallies, the scale of this recent event highlights the resilience of Bitcoin as it continues to attract investors and maintain its position in the market.
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