Bitcoin investors who hold long-term positions are sticking with their assets during this price cycle’s biggest downturn.
In its latest weekly newsletter, “The Week Onchain,” crypto analytics firm Glassnode highlighted the resilience of Bitcoin holders. Despite Bitcoin experiencing one of the steepest declines in this market cycle, long-term investors are not selling off their BTC.
Glassnode Highlights Bitcoin Resilience
While Bitcoin is facing its most significant drop in this bull market, Glassnode notes that long-term investors, often referred to as having “diamond hands,” remain steady.
According to Glassnode, this cycle is one of the weakest compared to previous Bitcoin halvings. Despite hitting a new all-time high before the April halving event, the current market has seen substantial losses. However, long-term holders continue to hold their Bitcoin firmly, even as the price fell to four-month lows of $53,500.
The newsletter points out that losses taken by both long-term and short-term holders amount to less than 36% of total capital flows across the Bitcoin network. In contrast, major market sell-offs in the past saw losses making up more than 60% of capital flows over several weeks.
Long-term holders are defined as those holding Bitcoin for over 155 days, whereas short-term holders are those with holdings of less than 155 days.
Glassnode’s data shows a lack of long-term holders selling their Bitcoin at a loss during the recent price decline. Despite the market’s toughest correction in 18 months, following a period of steady price increases after the FTX collapse, the overall market remains strong compared to historical cycles.
Will Bitcoin Prices Recover Soon?
As reported earlier, short-term traders are now facing losses, shifting the focus away from long-term holders. The question remains whether Bitcoin prices will soon turn around.
Summary Review: Despite the significant price decline in Bitcoin’s current cycle, long-term holders are maintaining their positions, showing resilience even in the face of the market’s deepest correction. Glassnode’s analysis indicates that while the current cycle is among the weakest compared to previous ones, long-term investors are not selling at a loss. This steadfastness suggests a strong underlying market structure. With short–term traders now experiencing losses, attention will be on whether Bitcoin’s price will soon rebound.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
