Bitcoin HODLing Rewards: Long-Term Holders Selling At 326% Profit
On-chain data shows that long-term Bitcoin holders have been selling off their coins recently as their profits surged to significant levels following the price surge.
Long-term Bitcoin holders recently made huge profits
As CryptoQuant community analyst Maartunn explains in a new report postal On day X, long-term holders have sold heavily over the past month. this”long term holder(LTH) refers to Bitcoin investors who have held Bitcoin for more than 155 days.
This group includes the most ruthless people in the market, rarely selling whether it is rising or crashing. These investors are “short term holders” (STH), they usually react to whatever is happening in the industry.
Therefore, the timing of LTH’s decision to sell is cause for caution, as it means the market is at a stage where even these diamond hands will be tempted to part with their long-held tokens.
Bitcoin is currently experiencing this as the bull market reaches unprecedented highs, forcing some LTH to reap their hard-earned profits. Below is a chart shared by analysts showing the 30-day trend in LTH supply.
As shown in the chart, Bitcoin LTH supply has seen a huge negative change over the past month, indicating that these HODLers have broken their silence.
During this window, diamond hands moved a total of 827,783 BTC. Of course, not all transactions correspond to sales, but generally speaking, whenever LTH moves its tokens, the likelihood that a sale is the intention is high.
The reasons behind the LTH sell-off become clear when the group’s profit margins are taken into account. As CryptoQuant author Axel Adler Jr points out in X postalthe group’s average profit was 326%.
As you can see from the chart, while Bitcoin LTH itself was highly profitable, it was still well below the profit margin for the quarter. 2021 bull market.
Of course, this does not mean that there is still enough room for the current rebound, because it is very likely that this cycle will only make these diamond hands less profitable than last time.
While LTH has been spending a lot of money recently, Bitcoin hasn’t moved much, which means a lot of new demand is still flowing into the sector, absorbing the selling pressure. However, it remains to be seen how long this balance can be maintained.
bitcoin price
Bitcoin briefly broke out of a consolidation phase earlier this month, but the asset appears to have returned to range, with its price currently trading around $98,200.
