Analytics firm Glassnode is revealing short-term Bitcoin (BTC) holders are sitting on losses as the flagship crypto asset trades below a key psychological level.
Glassnode says nearly all the short-term holders (STH), or those who have held Bitcoin for a period of fewer than 155 days, are counting losses.
“At the moment, almost 58% of the circulating supply is in profit while in the last three market capitulations this metric fell down to <50% levels. STH-Supply in profit is just 2.2% meaning the short-term holders are almost entirely at a loss.”
The crypto analytics firm says long-term holders (LTH) are holding the lion’s share of the profits in the prevailing bear market.
According to Glassnode, Bitcoin’s short-term holders are currently holding less than 10% of the profit in the market, as was the case during the previous two bear markets. The figure is based on the 14-period displaced moving average (DMA) of the Supply in Profit Held By Long-Term Holders metric.
The long-term holders, on the other hand, hold over 90% of the profit in the market as Bitcoin hovers below $30,000.
“In the last two extended bear markets, the 14 DMA of this metric broke above the 90% threshold line.
This means under the psychological pressure of bearish price action, short-term holders were holding < 10% of the profit in the market.
With the recent leg down to sub $30,000 range, this metric crossed over the 90% threshold. Above this level, STHs have essentially reached a near-peak pain threshold, with almost no unrealized profits held while LTHs dominate the remaining profitable supply.”
Bitcoin is trading for $29,682 at time of writing.
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Source: https://dailyhodl.com/2022/06/08/bitcoin-short-term-holders-approaching-peak-pain-as-btc-trades-below-30000-analytics-firm-glassnode/