Short-term Bitcoin According to Glassnode, holders have been on a buying spree lately, accumulating over 1.2 million BTC since December 2023. Bitcoin has received significant interest from investors since the beginning of the year, and rightly so, given the amount of attention generated by the launch of Spot Bitcoin ETFs in the US.
Although the cryptocurrency has seen an extended period of bullish action, most of the accumulation trend has been largely attributed to this whales and addresses holding large amounts of Bitcoin for long periods of time. However, recently data from Glassnode has revealed an interesting accumulation trend among short-term investors. At the same time, the profit-loss ratio of this cohort of trades has remained well within the profit zone since the beginning of the year, with profits exceeding losses by 50 times.
Interest in Bitcoin among private investors
Investors have seen Bitcoin struggle to trade above the $70,000 price level since mid-March. However, Bitcoin on-chain data recently has a interesting accumulation trend of Bitcoin’s custody addresses. In particular, 21,400 BTC, worth approximately $1.40 billion, were moved to these addresses in recent days, indicating that buying pressure may already be back.
The collective holdings of short-term holders have risen rapidly since December 2024, while long-term holders are cashing out. Short-term holders are wallets that only hold Bitcoin for a few weeks or months at a time. The fact that so many new coins have entered short-term portfolios recently shows that many investors have flooded into the market. This in turn could indicate that the cryptocurrency has finally reached full scale adoption, which could lead to continued price growth over the years.
Profit and loss data shows that short-term investors are collectively making profits since the beginning of the year. According to Glassnode, short-term holders have been buying and selling at a profit for most of 2024 so far. In fact, short-term gains have outweighed losses by fifty times. This means that more than 49 out of 50 short-term holders sold their Bitcoin for a higher price than what they paid.
Source: Glassnode
Interestingly enough, Bitcoin is recent rise to a new all-time high saw the short-term holder’s realized P/E ratio reach an all-time high on the 7D Exponential Moving Average.
Retail interest in increasing the BTC price?
The buying frenzy of both short-term and long-term owners suggests both retail and institutional importance Bitcoin is now at its highest point. Foundations point to the probably sequel of this trend in April, especially with the approximation of the next Bitcoin halving.
At the time of writing, Bitcoin is trading at $66,903, up 1.87% in the past 24 hours.
BTC price drops below $67,000 | Source: BTCUSD on Tradingview.com
Featured image from Yahoo Finance, chart from Tradingview.com
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