Bitcoin could face some selling pressure as long-time holders see the value of their BTC holdings drop by billions. According to data from the on-chain analytics platform CryptoQuant, speculators are stepping in while experienced holders are playing it safely. Despite the excitement around Bitcoin possibly reaching new all-time highs, these long-term investors are showing more caution than risk.
CryptoQuant has observed that long-term holders (LTH) of Bitcoin, defined as individuals holding BTC for 155 days or more, have experienced a remarkable shift in their net position. Moreover, the analysis revealed a sharp decline in their BTC exposure, dropping from $19 billion to $12 billion, indicating a $6 billion decrease in the realized market cap of these long-term holders.
This trend suggests that many long-term holders are likely taking profits or closing their buying positions. The chart illustrates the net change in the realized market capitalization of long-term holders (LTH), reflecting the total value of LTH coins based on the last price at which they were transferred.
Short-term holders increase stakes
Short-term holders (STHs) are taking a different approach to the market. These speculators, who hold Bitcoin for up to 155 days, are actively increasing their stakes. Recently, the realized cap for STHs saw a significant rise of $6 billion, shifting from—$17 billion to—$11 billion. Specifically, this suggests that short-term holders will likely take on more risk or boost their buying positions.
Additional findings show a strong connection between the realized Bitcoin price (BTC) transferred between one day and one week ago, the “hottest” segment of the BTC supply, and the current Bitcoin spot price. Currently, the realized price for this timeframe sits at $62,080, nearly the same as the spot price for BTC/USD.
Taha noted that the frequent changes between the market price and the realized price over a short period indicate that traders are closely monitoring this level. He further added that these rejections might suggest a weakening momentum after the price tries to stay above the realized price, which could lead to short-term corrections.
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