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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