30s Summary
Long-term Bitcoin holders made massive profits recently but are showing no signs of selling off their assets, according to analytics firm, Glassnode. Its latest publication revealed that most selling pressure is coming from those who bought Bitcoin between six to 12 months ago, accounting for 35.3% of sold Bitcoin. This sell-off coincides with Bitcoin’s price drop from over $99,000 to $90,800, and net flows out of Bitcoin ETFs exceeding $550 million. Meanwhile, MicroStrategy, the company with the largest Bitcoin ownership, continued to increase its reserves despite a 35% drop in its stock price.
Full Article
People who have been holding onto Bitcoin for a long time have seen profits of over $2 billion in a single day. Despite this huge profit, not everyone owning Bitcoin has sold off their digital currency.
In the latest issue of an online newsletter called “The Week Onchain,” the analytics company Glassnode revealed a split among Bitcoin’s investors.
Bitcoin owners have been watching their potential profits go through the roof as Bitcoin prices shot up to close to $100,000. However, long-term Bitcoin holders, often referred to as “hodlers,” have actually begun cashing in some of their coins, making huge profits. On November 22, hodlers made a record profit of $443 million.
Yet, while those figures suggest a lot of selling off, Glassnode’s data suggests that true Bitcoin veterans – those who’ve held onto their Bitcoin for a long time – aren’t really interested in selling just yet.
It seems those who bought Bitcoin between six and twelve months ago account for most of the sell-off pressure. These sellers make up 35.3% of total Bitcoin sold off. Most older investors are just sitting tight and maybe waiting for Bitcoin prices to go even higher.
One theory is that these recent sellers could be institutional buyers who bought Bitcoin after the launch of exchange-traded funds (ETFs) and only planned to ride the next Bitcoin wave.
However, the ETFs themselves have seen net outflows of more than $550 million in just two trading days. This all happened as the price of Bitcoin fell from above $99,000 to around $90,800.
Buyers of the company MicroStrategy also took a hit. The company, which owns the most Bitcoin of any company, saw its stock price drop by 35% from its peak on November 21. This happened despite the fact that the company continued to add to its Bitcoin reserves.
This write-up doesn’t give any investment advice or recommendations. Always do your own research and understand that every investment or trade has risk attached.