Bitcoin short-term holders and speculators are currently engaged in a massive profit-taking spree as Bitcoin’s current price gains take the crypto asset to a three-month high.
The profit-taking spree of Bitcoin speculators has resulted in Binance, The largest crypto exchange recording an inflow of $500 million in one day.
Onchain Analytics platform Glassnode revealed Bitcoin Short-term holders are cashing on Bitcoins recent surge above $65,000.
Bitcoin Short-term Holders Rake in Profits
Bitcoin Shorth term holders or STH are entities holding certain amounts of Bitcoin for 155 days or less.
This crop of Bitcoin investors is currently reeling in profits sending large amounts of BTC to exchanges like finance for profit taking.
On Oct 14, Glassnode data revealed that the amount of BTC sent by STH wallets to the largest global exchange, Binance, was the biggest since BTC/USD set all-time highs of $73,800 in March.
In total, Binance recorded STH inflows of 7,127 BTC (about $480 million).
Data tracked by Glassnode across all exchanges revealed a high volume of inflows last witnessed in early June.
Glassnode reacted to the profit taking by STH wallets acknowledging their healthy profit margins and hailing the performance of the speculators after months of sideways price action.
“Short-Term Holders currently show a profit dominance with their Profit/Loss Ratio trading at 1.2. This metric has recently broken 1 standard deviation above its 90-day mean, signaling a potential positive shift in investor sentiment.” Glassnode stated.
Bitcoin Demand Situation
The demand for bitcoin has remained fickle and unstable for some time now. However, it is to be noted that the largest class of Bitcoin whales has amassed 1.5 million BTC in recent months.
Glassnode pointed out that while demand for BTC has broadly declined since March’s highs, supply availability has followed suit.
“A notable divergence between supply and demand forces continues to grow,” Glassnode revealed in the latest edition of its weekly newsletter, “The Week Onchain,” released on Oct. 15.
“The demand side of the market has declined markedly since the March ATH, while several measures of the ‘active supply’ continue to compress and constrict. With respect to historical precedence, prior examples of acute tightness across the Bitcoin supply side have been a precursor for a regime of heightened volatility.” Glassnode added.
What to Know
- The difference between Short-term holders and Long-term holders of an asset like Bitcoin lies in the number of days the investors hold their assets without selling them.
- Any entity holding Bitcoin without moving it for over 155 days is considered a long-term holder, while short-term holders are those who have held onto their BTC for less than 155 days.
- Bitcoin at the time of the report is exchanging hands for $67,906 surging by 3.1% in the last 24 hours.
