Glassnode revealed that long-term Bitcoin investors started selling their BTC to make a profit. The company announced that it achieved this result by revealing the differences between Bitcoin investors in a new measurement methodology it introduced.
Glassnode introduced a methodology for measuring short and long term Bitcoin investors. In the report prepared, short-term traders and long-term investors were evaluated according to their profit / loss situation. The analyst firm emphasized the importance of knowing exactly the distinction between the two investors. However, it was stated that the Bitcoin supply held on exchanges was not taken into account in order to analyze the real HODLer behavior.
Long-term investors (abbreviated as LTH) are classified as investors with over 155 days of Bitcoins in their wallet. Short-term traders (abbreviated as STH) represent those who transferred BTC to other wallets within 154 days after buying BTC.
How much Bitcoin do investors have?
Glassnode said that long-term investors had 12.6 million BTC in October, and now this figure has dropped to 12.3 million. This accounts for 66% of the circulating supply. Emphasizing that this supply tends to decrease during bull rallies, the company interpreted it as a clear indication of profit, saying this is normal behavior.
At the time of writing, we see that the supply rate of long-term investors is starting to decline, indicating the early stages of the bull market. We also came to the conclusion that as a reaction to the recent price increase, Bitcoins flowing from HODLs are moving down. This is another sign that we are in the early stages of the bull rally. ”
Glassnode stated that the Bitcoin supply held by short-term traders is directly proportional to the BTC price, adding that 3.7 million BTC are found in these traders. This is 20% of the Bitcoin supply in circulation.
Investors’ profit / loss ratio has been calculated
Glassnode revealed that around 12 million of the LTH supply and 3.5 million of the STH supply are in profit. It was then said that when prices hit ATH in the bull markets, most of the LTH supply made a profit.
“We came to the conclusion that long and short term investor trends with this new methodology strongly supported the start of the bull market.”