- Long-term holders dominate Bitcoin’s total supply.
- The majority of these holders are currently in profit.
- Historically, this was a bullish sign for Bitcoin.
Thanks to its growing dominance, Bitcoin remains a focal point of discussion in crypto circles. Recent data from Glassnode has shed light on the distribution of Bitcoin among its holders, revealing intriguing patterns that could have broader implications for the crypto market.
Deciphering Bitcoin’s Holder Data
Glassnode’s recent findings present a compelling narrative about Bitcoin’s distribution. In particular, long-term holders, defined by an average purchase or receipt date exceeding 155 days, now control a staggering 70% of Bitcoin’s total supply.
This amounts to approximately 14,787,265 BTC. Even more noteworthy is that a significant 69.2% of these long-term holders are reaping profits.
Delving deeper, it’s not just the sheer volume of holdings that stands out but also the profitability of these positions. A remarkable 69.2% of these long-term holders are in a profitable position, indicating a strong confidence in the cryptocurrency’s value and future potential.
Implications for Bitcoin’s Market Position
A large share of long-term holders is often seen as a potential bullish sign for a crypto. Such a trend often suggests that these holders see Bitcoin not just as a speculative asset but as a store of value.
Moreover, the rise of traders in profit has historically been associated with upward trends in the price of a crypto asset, as seen in this graph.
This correlation suggests that when most traders are profitable, it often increases market confidence, further fueling positive price momentum.
Still, it is essential to note that the graph also suggests that this relationship ultimately breaks down. This is when many traders start taking profit, causing a bearish reversal.
On the Flipside
- Bitcoin has benefited from a downturn in crypto markets. As traders dumped altcoins, many saw BTC as a safe haven, causing a surge in its dominance.
- Investors diversify their portfolios as the crypto landscape expands, exploring altcoins and other digital assets. This diversification could impact Bitcoin’s dominance in the long run.
Why This Matters
Understanding on-chain data is crucial for crypto investors to make informed decisions. Thanks to BTC’s impact on the entire crypto market, its price movements affect all traders.
Read more about Bitcoin and why it still the king of crypto:
Bitcoin (BTC): The Birth of Cryptocurrency and the Blockchain Revolution
Read more about the growing issues plaguing Binance:
Binance.US Faces Volume Plunge Amid SEC Scrutiny and Exit Fears
