Bitcoin speculators repeat 2021 de-risk when exposure drops to 21.6K BTC
Bitcoin (BTC) speculators have distributed a net of 21,000 BTC in the last month in the records of rivals, data shows.
In a Quicktake blog post on September 9, onchain analytics platform CryptoQuant revealed the “flowing” capital of long-term holders.
Bitcoin “diamond hands” are accumulating
BTC's price performance in recent weeks has led to a loss of confidence among the new hodler set.
According to CryptoQuant, which tracks the 30-day net position change between both short-term holders (STHs) and long-term holders (LTHs), the former reduced its holdings by 21,600 BTC in the 30 days on September 8.
“The last two weeks have seen a sharp decline in STH net positions, which indicates that short-term investors are selling their holdings due to recent market volatility,” writes advertiser IT Tech.
IT Tech has narrowed its net position as one of the “several key trends” currently playing out among STHs, the name given to entities holding a certain amount of BTC for 155 days or less. Others said they were “getting out of the market” and “reducing risk.”
The information stands out as a rare episode in the history of STH monitoring. Such a large 30-decline has not occurred since mid-2021.
For LTHs, meanwhile, the picture is different – the stock is on a high, the group's 30-day net position has increased by a total of 22,000 BTC.
This is roughly equivalent to the drop in STH's position, and is also the largest increase in several years.
“Increasing LTH reserves may lead to price stability and market recovery, while STH sales may put short-term downward pressure on BTC prices,” IT Tech concludes.
“The data shows a clear flow of capital from weak hands (STH) to strong hands (LTH), indicating market stability.”
BTC goes from weak to strong hands
Cointelegraph often reports on the dynamic changes between Bitcoin holler collections.
Related: Is crypto entering a bear market? – 5 things to know in Bitcoin this week
The total cost base of STH components, for example, typically acts as long-term support during bull markets.
More recently, that trend line, currently sitting around $64,000, is unreliable, and points to significant upside losses continuing among STHs.
STHs account for less than 18% of the current BTC supply, CryptoQuant calculates.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
