Long-Term and Short-Term Investors in Bitcoin: Which Way Are They Heading? Current On-Chain Data!

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• Despite increasing hopes for the rising $40,000 target, Bitcoin has been trading steadily around $37,000-$38,000.
• Long-Term Holders (LTH) also maintain a strong stance, indicating potential shallow price declines but reflecting realized profits.
• According to recent data, Bitfarms, a global Bitcoin mining company, placed an order for 35,888 Bitmain T21 miners, totaling $2,660 per unit.

What is the current outlook for long-term and short-term investors in Bitcoin? Let’s delve into the updated on-chain data and Bitcoin price!

Current Status of LTH and STH in Bitcoin

Despite increasing hopes for the rising $40,000 target, Bitcoin has been trading steadily around $37,000-$38,000. However, this has not diminished the optimism of BTC enthusiasts. Bitcoin is experiencing strong momentum, aligning with significant positions of large holders. Particularly, signs of profit-taking are emerging among Short-Term Holders (STH), which, historically being marginal liquidity holders, can impact prices.

Long-Term Holders (LTH) also maintain a strong stance, indicating potential shallow price declines but reflecting realized profits. These observed trends suggest nuanced effects on Bitcoin, with strong momentum and significant profit-taking activities among STH.

If LTH continues to hold their positions, Bitcoin may experience price stability, limiting the depth of price declines. This could serve as a buffer against significant market downturns.

However, profit-taking signs, especially among STH, indicate a certain degree of market caution. This does not significantly alter the Long-Term thesis for Bitcoin. However, it suggests that profit-taking activities could influence short-term price movements.

This trend typically affects STH positions and does not change the Long-Term thesis. An increasing ratio indicates that, on average, coins are becoming less passive compared to long-term movements.

Another model evaluated by a metric called ‘Mean Coin Age’ measures how long the coins remain unspent in wallets and gauges the ‘age’ of coins since their last movement. Another metric, Coin Days Destroyed (CDD), provides a light view by multiplying the number of coins in a transaction by the number of days since the last spending.

This indicates a decrease in the movement of coins on the chain over the years. This ongoing supply imbalance, combined with expectations for halving and ETF approval, may only lead to minor price declines.

Bitcoin Miners Moving Full Steam Ahead

COINOTAG highlighted a new development indicating the optimism of mining companies regarding BTC. According to recent data, Bitfarms, a global Bitcoin mining company, placed an order for 35,888 Bitmain T21 miners, totaling $2,660 per unit.

This move is in line with the company’s strategy to secure 17 EH/s of hardware security by the second half of 2024, aiming to reach 21 EH/s by the end of 2024. Expected improvements include low unit production costs, increased efficiency, and a significant hash rate increase.

In the first half of 2024, Paso Pe plans to increase production at the Paraguay facility, including an expansion from 50 MW to 70 MW. This expansion aims for rapid growth to 12 EH/s, with a 90% increase in hash rate starting from November 27th. Another development in Yguazu, Paraguay, expects new high-performance miners to contribute to significant organic growth with a starting capacity of 70 MW.

The substantial investment in mining equipment indicates the high level of hope shown by mining companies. Time will reveal whether their bets pay off. Currently, BTC is trading at $37,220, reflecting a -1.15% decline in the last 24 hours.