Bitcoin: Here’s what the ‘weak hands’ are up to
- The percentage of short-term holder supply sent to exchanges surged to 1.28%.
- Most of these investors were selling at profits.
Despite the ebbs and flows of the market, Bitcoin [BTC] clutched on to the $30,000 mark over the past week, exhibiting its resilience and rekindling hopes of a future upward movement.
Read Bitcoin’s [BTC] Price Prediction 2023-24
The rally, powered by an increasing interest shown by TradFi giants for cryptos, enticed short-term holders (STH) of the king coin. According to a tweet by on-chain analytics firm Glassnode dated 28 June, the percentage of STH supply sent to exchanges surged to 1.28%, accounting for more than 35k BTC.
As evident from the graph below, the inflows have steadily risen over the last few days, indicating the willingness of STH to sell their holdings and lock in gains.
Short-term investors cash out
Short-term holders are the participants who keep possession of coins for less than 155 days, according to Glassnode. Referred to as “weak hands” as well, this cohort of users is thought to have a low risk tolerance and are more likely to relinquish positions owing to market volatility.
As shown below, a sharp drop in supply held between 1-3 months was observed over the last two weeks, lending credence to the aforementioned narrative of distribution. Interestingly, this age band witnessed an uptick in HODLing activity throughout May when the price of BTC was rangebound.
Meanwhile, most of the STH were finding it lucrative to sell their tokens on exchanges. According to blockchain research firm CryptoQuant, the Short Term Holder SOPR has been more than 1 since the bullish rally began last week, indicating that most of these investors were selling Bitcoin at profits.
Are diamond hands following suit?
While STH were locking in profits, Long-term holders (LTH) of the coin continued to HODL. LTH are the participants who keep possession of coins for more than 155 days.
Despite the network being in a state of net profit, as exemplified by the Net Unrealized Profit/Loss, most age bands corresponding to LTH supply showed an uptick.
Is your portfolio green? Check out the Bitcoin Profit Calculator
At the time of publication, Bitcoin was trading hands at $30,186, recording a marginal drop of 0.71% from the previous day, as per CoinMarketCap. The market mood dramatically shifted to ‘Neutral’, after being in ‘Greed’ over the last week.