The recent price decline shakes out apathy amongst short-term holders. However, the drastic loss of BTC price by more than $10,000 brought down the global market cap to a multi-month low of $2.19 trillion. The flagship asset diving closely 30% from ATH has been heavily failed to take its toll on generating newer highs.
STHs Impatience Would Generate Additional Profits to LTHs:
As the most valued asset has undergone a brutal sell-off in the last weekend, an on-chain metric Glassnode confirms the historical loss in traders’ portfolios. Last weekend was a capitulation for the history books in Bitcoin, as holders realized a net loses of over $2.18 billion. Interestingly, this has been the third-largest on-chain capitulation in history over the weekend.
The platform has exclaimed a cohort of Bitcoiners who suffered these losses. In its recent tweet thread, it went on to mention that Long term holders (LTHs) continued to hold on to their positions with no sell-offs. Despite record break liquidations, LTHs remained stagnant with no significant sell-offs. As per the platform, probably the recent buyers notably short-term holders realized a mammoth loss in the recent crash.
Though the old hands stand firm, coins held by newbies have taken the brunt of sell-off since July. Short-term holders who brought the currency at high prices hold the BTC at an unrealized loss, confirms Glassnode. However, it appears along with long-term holders even whales remained persistent by holding their coin. Despite the heavy crash, exchanges have seen decent inflows only up to 2k to 3.2k. Whilst during the May market crash, exchange inflows were above 10k.
Collectively, a quick transition from greed to fear index led to the close of almost 25% futures contracts. However, the recent crash appears to have impacted amateur Bitcoiners. While long-term holders are confident of a classy leg up by the month’s end.