Recent market data show that the number of short-term bitcoin investors is declining and their capital losses continue to increase. However, analysts see this as a sign that they are becoming long-term investors and are reluctant to sell at these prices.
According to the Telegraph, long-term bitcoin traders increased their sales to a degree that minimized risk last week. However, long-term maintenance is still their main strategy for investing in this market.
According to Chinanode, a blockchain analyst at Glassnode, a lack of confidence in macroeconomic factors over the past week has led long-term investors to increase sales and short-term investors to withdraw from their trading positions. 5% of total sales last week were for bitcoins that had not been traded for at least six months. This amount has not been observed since November.
The number of short-term traders who hold bitcoins for less than 155 days is still declining, but not necessarily because they are selling. This shows that they have become long-term owners. According to Glesnood, although most short-term traders sell their digital currencies, the recent decline in the inventory of these traders is “due to the fact that many of their bitcoins have not been traded and their retention time has exceeded 155 days.”
According to indicators related to the accumulation of bitcoins, there are no signs of declining market behavior of this digital currency; Because his overall pressure on sales is still constant. In addition, despite the recent increase in pressure on sales, more than 75% of the supply of bitcoins in circulation has been inactive in the last six months. According to Golsnood, this means that current investors are primarily looking to maintain their assets.
Golsnood added that these transverse jumps in sales pressure have entered a relatively strong market that has so far avoided any significant upward or downward trend and has remained in a certain range for most of this year. These conditions do not allow investors to leave, which often retreat to the end of downturns and sell their digital currencies. According to the CoinGecko Institute, a significant number of market investors have not left the market since May, when the price of bitcoin fell from $ 58,771 to $ 34,977 in 15 days.
The period between May and October (May to October) was the last time investors surrendered and sold their bitcoins. This prompted the market to show signs of decline.
The profit / loss ratio of short-term traders is still close to the lowest level recorded in mid-2021. Currently, short-term traders hold 82% of their bitcoins at a loss. According to Golsnood, this is a sign of the next phase of market downturn, with smart investors sending bitcoins into their wallets to wait for the positive profit margin to return.
It is worth noting that the flow of bitcoins from digital currency exchanges is still high. Last week, only 31,130 bitcoins left the Coinbase, the biggest one-year low in five years. Withdrawal of bitcoins from exchange offices shows that bitcoin credit has increased. That is why experts believe that this digital currency is an essential element of the portfolio of investors in today’s world and they are not interested in redeeming their assets.
The Golsnood publication: Short-term traders becoming long-term holders of bitcoin first appeared in digital currency.