Bitcoin long-term holders are celebrating profits as the cryptocurrency’s price surges. According to a market report by Glassnode, only a negligible amount of long-term holder supply is currently at a loss, with most holders acquiring Bitcoin below the current price. These long-term holders, who bought at the 2021 cycle top, now make up over 85% of the Bitcoin supply in profit.
In contrast, short-term holders are struggling to stay afloat with their investments. The short-term holder supply currently represents most of the market losses as these investors continue to buy Bitcoin at high points. Data shows that a significant portion of the short-term holder supply is currently at a loss, especially after Bitcoin’s recent price correction to $58,000.
Glassnode also highlighted a cluster of short-term holder coins accumulated near the current spot price. This accumulation puts these investors at risk of facing losses or profits with any volatile price fluctuations. Any significant drop or increase in Bitcoin’s price could prompt these holders to sell off their tokens, adding to market instability.
Single-Cycle holders on watchlist
Aside from short-term holders, Glassnode pointed out the importance of monitoring ‘Single-Cycle holders.’ This group of investors has been sitting on significant unrealized profits since Bitcoin surpassed the $40,000 mark. Their actions in response to future price movements could have a notable impact on the market.
While long-term holders enjoy profitability and stability in their Bitcoin investments, short-term holders face challenges and potential losses. The dynamics between these two groups of investors paint a picture of the current state of the Bitcoin market, showing the importance of strategic decision-making and risk management in the volatile world of cryptocurrency trading.
