Long-Term Bitcoin Holders Stock Up Amid Price Gains as Short-Term Exits

Long-term Bitcoin holders are increasing their holdings significantly compared to short-term holders, accumulating 635,340 BTC against 460,896 BTC sold by the latter. Currently, 2.6 million BTC are still at a loss from previous highs. Despite recent price fluctuations, LTHs maintain a strong commitment to Bitcoin, showcasing their strategy of buying during market weakness and selling during strength.

Long-term Bitcoin holders (LTHs) have demonstrated increased commitment by purchasing more BTC than short-term holders (STHs) have sold. As Bitcoin’s price surpasses $90,000, LTHs have added 635,340 BTC to their holdings this year, exhibiting a 1.38:1 accumulation ratio. Meanwhile, approximately 2.6 million BTC remain at a loss, indicating persistent resistance from those who purchased BTC above $95,000.

For each BTC sold by STHs, LTHs have acquired 1.38 BTC, reinforcing their determination amidst the ongoing recovery. Since January’s price low, LTHs now hold a total of 13,755,722 BTC. This group consists of holders who have retained BTC for at least 155 days, typically accumulating during market downturns and selling during price increases. In contrast, STHs, having bought BTC within the last 155 days, have sold 460,896 BTC, primarily due to profit-taking or losses, now holding 3,516,265 BTC.

The 155-day timeframe aligns with November 20, when Bitcoin ascended from $65,000 to $95,000, marking a transition for earlier investors into long-term positions. Despite facing a 30% dip from January’s peak of $109,000, LTHs continue to hold their assets predominantly. As Bitcoin bounces back above $90,000 after a prolonged period below this threshold, many coins remain underperforming, with 2.6 million BTC still in loss, albeit reduced from a high of over 5 million earlier this month. These losses largely stem from investments made during Bitcoin’s spike past $100,000.