On-chain data shows that long-term Bitcoin holders have been selling recently as their profits reached significant levels after the price surge.
Bitcoin Long-Term Owners Have Profited Largely Recently
As CryptoQuant community analyst Maartunn explains in a new post on X, long-term holders sold a lot last month. “Long-term holders” (LTHs) refer to Bitcoin investors who have held their coins for more than 155 days.
This collection includes the tireless hands of the market, who rarely sell whether a rally or a crash is in progress. These investors are very different from “short-term holders” (STHs), who tend to react to whatever happens in the sector.
Therefore, the times when LTHs decide to sell would be something to watch out for because it means that the market is at a stage where even these diamond hands are tempted to part with their long-held stocks.
Bitcoin is currently experiencing one such event, as the bull runs to the top without seeming to force other LTHs to reap their hard-earned profits. Below is a chart shared by an analyst showing the trend in the 30-day change in LTH supply.
As shown in the graph, the supply of Bitcoin LTH has registered a significant negative change over the past month, suggesting that these HODLers have broken their silence.
In total, diamond hands transferred 827,783 BTC in this window. Naturally, not all activities are related to sales, but in general, there is a high probability of sales being the intention whenever LTHs move their coins.
The reason for the LTH selloff is evident when considering the extent of the group’s profit loss. As CryptoQuant writer Axel Adler Jr pointed out in X’s post, the team is sitting on an average profit of 326%.
From the chart, it can be seen that although Bitcoin LTHs gains are high in themselves, they are still far below the limit during the 2021 bull run.
This, of course, does not mean that the current meeting also has a lot of room to go, as it is possible that this cycle may simply gain these diamond hands fewer benefits than the last time.
Although LTHs have used significant amounts recently, Bitcoin has not fallen significantly, which means that a lot of new demand is still coming into the sector that is absorbing this selling pressure. However, it remains to be seen how long this balance will be maintained.
BTC price
Bitcoin showed a brief break in its consolidation phase earlier in the month, but it looks like the asset has found a way back into the range as its price is now trading around $98,200.