Data shows that the so-called Bitcoin diamond hands have lost 84500 BTC from their assets since the collapse of the crypto exchange FTX. It is feared that this amount will increase even more in the possible downward movement of the market.
Sharp Drop in Bitcoin Long-Term Holder Supply
According to Glassnode’s latest weekly report, the long-term BTC supply has observed one of the most significant declines this year in recent days. The “long-term owner” (LTH) group is defined as a Bitcoin group that includes all investors who have held their coins for at least 155 days without selling or moving them.
Statistically, the longer an investor holds their coins steady, the less likely they are to sell at any moment. Since LTHS make up the group that most often keeps their coins dormant, they are the group that is least likely to dispose of them during periods of pressure.
The long-term owner supply is known as an indicator that measures the total amount of BTC that this group as a whole is currently holding in their wallets.
When the value of this metric drops, it means that LTHS are probably moving their coins for the purpose of selling. The increase shows that these owners have recently expanded their wallets. Now there is a graph showing the trend in the supply of Bitcoin LTH over the past year:
As you can see in the chart above, the supply of Bitcoin LTH reached an all-time high with about 13,883 million BTC a few weeks ago. This peak was just before the start of the collapse triggered by the bankruptcy of the crypto exchange FTX. But as soon as the price decline began, the value of the indicator also began to fall.
This means that LTHS are contributing to the price drop by selling their coins. The steady continuation of the decline in their supply over the past two weeks shows that these determined owners have not slowed down even after the initial collapse ended.
Sales Increased, Metric Fell
So far, the supply of Bitcoin LTH has decreased by about 84,56 thousand BTC since the determination of ATH, reducing the value of the metric to 13,799 million BTC. June May, June and July, the decrease was significant, but less than the previous three sales.
However, while they should be the most stable group in the Bitcoin market, accordingly, there is still a sign of weakness and the sell-off still seems to be going on, so it is likely that the situation may deepen further. At the time of this writing, Bitcoin’s price was hovering around $16,000, down 5% over the past week.
Disclaimer: The information contained in this article does not contain investment advice at all. Investors should know that cryptocurrencies carry risks due to their high volatility and should carry out their transactions in accordance with their own research.
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