Majority Of Traders Who Bought Bitcoin at All-Time High Have Sold Their Coins
Bitcoin peaked its all-time high nearly $69,000 in November last year. According to a new report, it now majority of the top-of-the-market buyers have since sold their coins.
According to Glassnode, a leading on-chain analytics provider, over 50% of the coins that were bought for about $60,000 have since been sold between $35,000 to $38,000 price range. At the same time, several indicators showed that long-term holders have strong, even amid the geopolitical situation.
Glassnode in its report looked into Bitcoin’s UTXO Realized Price Distribution (URPD) on significant dates last year, comparing them to today. URPD tracks the prices at which existing Bitcoin last moved on-chain. The data can be used for understanding how many buyers made money or lost.
On May 10th 2021, Bitcoin URPD was highly concentrated in the $54,000 to $60,000 range. After that a massive price drop happened, which Glassnode called a “weak hand to strong hand distribution event,” meaning newer holders sold more compared to more experienced holders.
As BTC visited to similar highs in November last year, URPD was more evenly distributed around the $35,000, $47,000, and $62,000 areas. According to the report, many who bought from May to July sold BTC at a profit between August to November.
The distribution pattern has remained very similar, when Bitcoin started to decline below $40,000 over the following months. However, to the degree that the redistribution occurred, it came from a capitulation of $60,000 buyers to other holders near $35,000.
Glassnode wrote:
“This spending behaviour describes a market dominated by price insensitive HODLers, who appear unwilling to liquidate their coins, even if held at a loss. Meanwhile top buyers have been significantly flushed out, and represent a far smaller proportion of the investor cohort when compared to May-July 2021.”
Other data shows that long-term investors are holding on to their coins, even as other market participants get flushed. Exchange withdrawal levels have not changed since July, and deposit levels are going down — which means that the market is increasingly dominated by buyers who don’t plan to sell any time soon.
