- Long-term Bitcoin holders (155+ days) are transferring holdings to exchanges to take profits from ~$26k purchases in July 2022
- Short-term holders (<155 days) exhibit erratic behavior, transferring $2.4B at a loss on Jan 18, having already sold holdings from ~$49k peak
- Data shows divergence between long and short-term holders; long-term taking profits, short-term capitulating at losses, revealing differing mindsets
Recent data reveals that long-term and short-term Bitcoin holders are behaving differently in the current market environment.
Long-Term Holders Taking Profits
Long-term holders, defined as those holding Bitcoin for over 155 days, have started transferring significant amounts of Bitcoin to exchanges. On January 17th and 18th, these long-term investors moved around 25,000 BTC, worth around $1 billion, to exchanges. This suggests they are taking profits from Bitcoin purchased around July 2022 when prices were around $26,000.
In contrast to short-term holders, these long-term holders do not seem to be selling their holdings at a loss. The data indicates they invested around July 2022 and are now profit taking.
Short-Term Holders Exhibit Erratic Behavior
Short-term holders, defined as those holding Bitcoin for less than 155 days, are displaying more erratic behavior. On January 18th, these short-term holders transferred $2.4 billion worth of Bitcoin to exchanges at a loss. This elevated transfer activity and selling at a loss indicates unstable and reactive behavior.
Unlike long-term holders taking profits, short-term holders who bought around the $49,000 peak have likely already sold. Profits for short-term holders are declining.
Key Takeaways
The data reveals bifurcation between long-term Bitcoin holders and short-term holders. Long-term holders are taking profits from mid-2022 purchases while short-term holders are capitulating at a loss. This divergence provides insight into the mindset of each investor type.
