Bitcoin Diamond hands’ sold over 50% less at $73.8K—Research
Even though they have Bitcoins worth several times what they paid for them, long-term holders are trying not to cash out.
The price movement of Bitcoin Diamond Hands Sold has not hit its all-time high of $73,800, as indicated by the “diamond hands” of Bitcoin, which are not moving in a manner that signals this point. According to fresh research released on May 28th by on-chain analytics startup Glassnode, the selling pressure from older currencies is around half as effective as it was during previous bull market peaks. The fact that studies took place proves this.
Bitcoin investors hold off on profit-taking
Although the price of Bitcoin is currently hovering close to $70,000. Long-term holders (LTHs) of Bitcoin Diamond Hands Sold continue to resist the urge to reap profits from their holdings. Even though they are making an average profit that is three and a half times the amount of Bitcoin that they are selling, LTH wallets are not selling Bitcoin at a rate that would make the current bull market unsustainable.
“The importance of the opposing side, the sell-side pressure, from Long-Term Holders grows in tandem as prices appreciate in response to renewed buy-side pressure,” Glassnode said in the most recent issue of its weekly newsletter, “The Week On-Chain.” “Send out a copy of “The Week On-Chain” weekly. The term “LTH” is used to describe wallets that have been receiving Bitcoin for 155 days or more. For Bitcoin investors, these wallets stand as an example of the safer, less risky side of the market.
Using the market value to realised value (MVRV) metric, Glassnode found that LTHs in large quantities will soon achieve unprecedented amounts of unrealized profit. It continued by saying that LTH trading above 1.5 but below 3.5 defines a historical transition phase between bear and bull markets and that this phase can last anywhere from one to two years. During this period of change, this account was penned.
LTH sell pressure “has noticeably contracted”
Consideration of the most recent all-time high reached in March, on the other hand, leaves room for optimism if Bitcoin price discovery occurs again. Even at the high of the bull market, which was $73,800, LTHs were not distributed to the market. As heavily as they had been in previous blow-off peaks of the bull market. The newsletter indicated that the LTH net distribution rate was reached. A considerable 836 thousand to 971 thousand BTC each month during the two bull markets that occurred in the past.
In his statement, Glassnode referred to the continued selling that is taking place among investors in the Grayscale. Bitcoin Diamond Hands Sold Trust (GBTC), which is an institutional investment vehicle has lost its top position among spot. Bitcoin exchange-traded funds measured by assets under management this week. The study’s findings suggest that LTHs will likely persist. Since the last quarter of last year, there has been a noticeable increasing trend in investment. A part of the report’s conclusion states that “sell-side pressure has noticeably contracted.” As a result of “significant long-term holder investor distribution into the $73k ATH.”
