1 year ago
Bitcoin fell arsenic debased arsenic $15,500 connected Nov. 21, marking a 106-week debased for the starring cryptocurrency.
Market sentiment remains fragile arsenic choler implicit the FTX fiasco turns to acceptance, and the magnitude of what happened yet sinks in. Worse still, the afloat grade of the achromatic spread is not known astatine this time.
While respective crypto exchanges scrambled to grounds solvency arsenic a effect of the FTX fallout, contagion hazard continues to measurement heavily.
The Crypto Fear & Greed Index presently reads 22 – utmost fear. Strangely, this compares comparatively favorably versus the Terra implosion successful June which saw a speechmaking of 6 astatine highest fear.
On-chain Glassnode information analyzed by CryptoSlate revealed, contempt contagion fears, Long-Term Holders (LTHs) are continuing to accumulate, adjacent contempt a important proportionality who are nursing losses.
Bitcoin: Total Supply Held by Long-Term Holders
The Total Supply Held by Long-Term Holders (TSHLTH) refers to BTC held for longer than six months. Tokens that scope this clip threshold are mostly considered dormant and are improbable to beryllium spent.
By contrast, Short-Term Holders (STHs) mostly notation to caller investors with “weak hands” and are much apt to exit the marketplace successful times of terms volatility.
The illustration beneath shows LTHs accumulating during times of terms suppression portion selling during bull runs. The TSHLTH presently reads 13.8 cardinal BTC – an all-time high. This represents astir 72% of the circulating supply.
Source: Glassnode.comTotal Supply successful Loss Held by Long-Term Holders
LTHs are considered astute money, successful that they thin to determination successful accordance with logic and crushed alternatively than emotion.
The illustration beneath shows astir 6 cardinal coins held by LTHs are astatine a loss. Although this signifier fits with carnivore marketplace bottoms successful 2015, 2019, and 2020, this is the highest magnitude to date.
Source: Glassnode.comLong-Term Position Net Change Position
Net Change Position (NCP) refers to the nett magnitude of Bitcoin entering oregon exiting speech wallets.
The illustration beneath shows LTHs are presently nett accumulating astatine the highest complaint successful 2022. Although H1 saw NCP flipping betwixt accumulation and distribution, H2 is mostly characterized by nett accumulation. This inclination is interpreted arsenic bullish, successful that LTHs proceed to support the religion and are consenting to buy, adjacent successful fearful marketplace conditions.
Source: Glassnode.comSupply successful Profit/Loss
Analyzing LTHs successful nett and nonaccomplishment reveals 50% of LTHs are successful nett astatine the existent price, portion 33% are moving astatine a loss.
Compared to erstwhile carnivore markets, this counts arsenic 1 of the highest discrepancies, with the 2015 carnivore marketplace a notable contender.
Source: Glassnode.comTypically, a caller rhythm of inclination reversal follows capitulation. But the supra information shows LTHs person yet to suffer anticipation and capitulate astatine the existent price.
The station Research: Long-term Bitcoin holders stubbornly clasp connected contempt 33% holding losses appeared archetypal connected CryptoSlate.
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