After reaching a new high of about $69,000 on November 10, the bitcoin price adjusted by 20% and this week dropped to the level of $55,700. Nevertheless, large holders of cryptocurrencies retain their assets and do not succumb to panic sales, according to a new report by Glassnode.
Over 13.4 million coins remain in the wallets of long-term bitcoin holders, which is only 100,000 less than the record values. Of the total volume, only 3% of bitcoins are unprofitable for this group. Short-term holders, on the other hand, are forced to put up with losses after acquiring cryptocurrency at recent highs.
"When there is a major sale on the bitcoin market, changes in the ratio of profitable assets show what proportion of coins at the blockchain level were purchased at prices higher than current ones. Since Bitcoin reached a new high, more than 17% of BTC have become unprofitable, which leaves 83% of coins profitable. However, even after a 20 percent correction (-$13,500), it doesn't look like long-term holders are spending their coins in a panic. Their assets peaked at around 13.5 million BTC and decreased by only 100,000 BTC over the past month, which corresponds to only 0.7% of the total amount of coins at their disposal," analysts write.
After the correction, bitcoin gradually regains its positions, rising by 8% during the day. These movements have really affected new investors, but long-term holders feel quite comfortable at current prices, Glassnode claims.
"If we start from the proportion of supply (with the exception of exchanges), the absolute majority of long-term holders keep profits and store 78.7% of all bitcoins with profit in their wallets. Only 3% of the supply available to long-term investors is currently unprofitable. Short-term investors who bought bitcoin at the highs now hold the absolute majority of coins with an unrealized loss," the authors add.