- As Bitcoin rallied past $50,000, short-term holders transferred over $2 billion in profits to exchanges, continuing a trend of taking substantial profits during Bitcoin price surges.
- Long-term holders have transferred relatively modest profits to exchanges compared to short-term holders as Bitcoin rose above $50k, only about $142 million.
- Data reveals divergence between behaviors of short-term and long-term holders during the rally, with short-term holders inclined to sell into price rises while long-term holders remain largely hodlers.
Bitcoin has been on a tear lately, surpassing the $50,000 mark for the first time since December 2021. This surge reflects heightened investor interest, as indicated by robust inflows into the spot Bitcoin ETF. However, data shows that short-term holders have been transferring significant profits to exchanges during this rally.
Massive Profit Taking by Short-Term Holders
As Bitcoin crossed $50,000 on February 12th, about $2.3 billion in profits were sent to exchanges by short-term holders (STHs), those who have held Bitcoin for less than 155 days. This echoes similar large-scale profit transfers that occurred on January 26th and January 11th as Bitcoin rallied.
According to Glassnode data, on February 8th and 9th alone STHs transferred over $4 billion worth of Bitcoin in profit to exchanges. Despite Bitcoin’s rising value, STHs persist in taking profits.
Long-Term Holders’ Profits Remain Modest
Meanwhile, profit transfers by long-term holders (LTHs), those holding Bitcoin for more than 155 days, have been relatively modest. As Bitcoin crossed $50k, LTHs transferred only about $142 million in profits to exchanges, significantly less than STHs.
The Divergence Between STHs and LTHs
The data reveals a divergence between the behaviors of STHs and LTHs during Bitcoin’s latest rally. While STHs are taking substantial profits, LTHs remain largely hodlers. This trend highlights STHs’ inclination to sell into rallies, whereas LTHs have longer investment time horizons. As Bitcoin continues its ascent, it will be telling to see whether this dynamic shifts.