Bitcoin was trading at $23,221, up 1.05% over previous day
According to Glassnode, an on-chain analytics firm, a significant proportion of bitcoin’s selling pressure is coming from long-term holders, particularly those who bought their coins near the market peak in 2021-2022.
In a recent analysis, Glassnode monitors stakeholder behavior with a focus on Long-Term Holders, who control nearly 13,337 million BTC, or 79.85% of the current supply. According to the on-chain analytics firm, the Long-Term Holder cohort has on net distributed about 222,000 BTC since the beginning of May, which is equal to about 1.6% of their all-time high holdings.
It noted that, as of mid-July, long-term holders (LTH) were settling coins at a loss, according to the weekly average of the LTH-SOPR indicator, which measures the ratio between the settlement price and the average acquisition price. Is. ,
The weekly averaged value of LTH-SOPR is now at 0.67, indicating a 33% loss locked in on average, as prices have just encountered resistance near the $24,000 mark. According to Glassnode, this demonstrates spending at a loss by Long-Term Holders in the current market.
Bitcoin holders unchanged from 2017–2021 cycle
According to Glassnode, those still holding coins from the 2017-2021 cycle (or earlier) mostly retain their holdings, as opposed to those who bought coins at the top of the market for 2021-2022.
The aggregated behavior of long-term holders in the 2021–2022 group has shifted over the past three weeks from 79,000 BTC/month of accumulation to shedding 47,000 BTC/month of distribution, according to the report. The recent market recovery also gave holders a chance to exit some liquidity.
Since mid-July, the cryptocurrency market has recovered in a meaningful way, despite all the macroeconomic concerns. At the time of writing, bitcoin was trading at $23,221, up 1.05% from the previous day.
