Data from Glassnode shows the recent selling from Bitcoin long-term holders has come from those who bought at more recent prices, and not the hodlers who got in during the 2017-2020 cycle.<\/p>\n
Bitcoin Long-Term Holders Have Been Selling At An Average Loss Of 33%<\/p>\n
As per the latest weekly report from Glassnode, the BTC long-term holder SOPR has had a value of less than one during recent weeks.<\/p>\n
The \u201cspent output profit ratio\u201d is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
When the value of the ratio is greater than one, it means the market as a whole is selling at some profit right now. On the other hand, the indicator\u2019s value being less than one implies the investors are realizing some loss on average currently.<\/p>\n
Naturally, the metric\u2019s value being exactly equal to one suggests the market is just breaking even at the moment.<\/p>\n
The \u201clong-term holder\u201d group is a cohort that includes all investors who held their Bitcoin for at least 155 days before selling.<\/p>\n
Now, here is a chart that shows the trend in the SOPR over the last decade specifically for these LTHs:<\/p>\n\n
Looks like the value of the indicator has been going down recently | Source: Glassnode’s The Week Onchain – Week 28, 2022<\/p>\n
As you can see in the above graph, the Bitcoin long-term holders have been selling at an average loss of 33% in recent days.<\/p>\n
Related Reading |\u00a0Bitcoin Bearish Signal: Leverage Ratio Is Still Very High<\/p>\n
However, as the below chart shows, the average cost basis of the LTHs is around $22.3k, which is only around 6% below the BTC price at the time the report came out (it\u2019s now 10% at the current rate).<\/p>\n\n
The BTC price seems to have sunk below the LTH cost basis recently | Source: Glassnode’s The Week Onchain – Week 28, 2022<\/p>\n
The LTHs selling at an average of 33% loss despite the cost basis putting them only 10% underwater means the recent selling has majorly come from hodlers who bought during the recent highs.<\/p>\n
Related Reading |\u00a0Former BitMEX CEO Arthur Hayes Says \u201cPrepare\u201d For A Massive Bitcoin Rally<\/p>\n
This would suggest that LTHs who accumulated during the 2017-2020 cycle or earlier (and hence are either in profit, or in little loss) are still holding strong onto their Bitcoin.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $19.7k, up 1% in the last seven days. Over the past month, the crypto has lost 31% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
The value of the crypto seems to have been going down during the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Data from Glassnode shows the recent selling from Bitcoin long-term holders has come from those who bought at more recent prices, and not the hodlers who got in during the 2017-2020 cycle.<\/p>\n
Bitcoin Long-Term Holders Have Been Selling At An Average Loss Of 33%<\/p>\n
As per the latest weekly report from Glassnode, the BTC long-term holder SOPR has had a value of less than one during recent weeks.<\/p>\n
The \u201cspent output profit ratio\u201d is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
When the value of the ratio is greater than one, it means the market as a whole is selling at some profit right now. On the other hand, the indicator\u2019s value being less than one implies the investors are realizing some loss on average currently.<\/p>\n
Naturally, the metric\u2019s value being exactly equal to one suggests the market is just breaking even at the moment.<\/p>\n
The \u201clong-term holder\u201d group is a cohort that includes all investors who held their Bitcoin for at least 155 days before selling.<\/p>\n
Now, here is a chart that shows the trend in the SOPR over the last decade specifically for these LTHs:<\/p>\n
Looks like the value of the indicator has been going down recently | Source: Glassnode’s The Week Onchain – Week 28, 2022<\/p>\n
As you can see in the above graph, the Bitcoin long-term holders have been selling at an average loss of 33% in recent days.<\/p>\n
Related Reading |\u00a0Bitcoin Bearish Signal: Leverage Ratio Is Still Very High<\/p>\n
However, as the below chart shows, the average cost basis of the LTHs is around $22.3k, which is only around 6% below the BTC price at the time the report came out (it\u2019s now 10% at the current rate).<\/p>\n
The BTC price seems to have sunk below the LTH cost basis recently | Source: Glassnode’s The Week Onchain – Week 28, 2022<\/p>\n
The LTHs selling at an average of 33% loss despite the cost basis putting them only 10% underwater means the recent selling has majorly come from hodlers who bought during the recent highs.<\/p>\n
Related Reading |\u00a0Former BitMEX CEO Arthur Hayes Says \u201cPrepare\u201d For A Massive Bitcoin Rally<\/p>\n
This would suggest that LTHs who accumulated during the 2017-2020 cycle or earlier (and hence are either in profit, or in little loss) are still holding strong onto their Bitcoin.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $19.7k, up 1% in the last seven days. Over the past month, the crypto has lost 31% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
The value of the crypto seems to have been going down during the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3247","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=3247"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3247\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=3247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=3247"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=3247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}