How short-term Bitcoin holders invest differently to long-term holders according to on-chain data
Looking at on-chain data, there is a clear difference in how short-term and long-term holders invest in Bitcoin. Short-term holders buy primarily at the $ 17,000 to $ 48,000 level, while long-term holders are strong up to $ 60,000.
You can analyze some of the key graphs to better understand the data. The UTXO Realized Price Distribution (URPD) shows the price at which the current set of Bitcoin UTXOs was created. Each bar shows the number of existing Bitcoins that were last moved within the specified price bucket. The price specified on the x-axis refers to the lower bound of that bucket.
Following a 75% drawdown from this year’s all-time high, 11.5% of supply is currently held around the $ 17k price level. Increased holdings between $ 17,000 and $ 24,000 may indicate that much demand has been wiped out. Bitcoin has not fallen below this price since 2020, so below $ 17.6k, all non-moving coins should be defined as long-term holders. However, these investors can be considered mature long-term holders. The coin is lost or the owner does not want to sell it to this point.
The following graph shows the types of cohorts to buy at these price levels.Entity adjustment version of URPD metric It provides a supply segmented by long-term holders (blue), short-term holders (red), and exchange balances (gray). All supplies are displayed in the price bucket where each entity (on average) got coins.
For short-term holders (holding BTC for less than 155 days), you can see the transfer of ownership from the long-term holder’s surrender seller to the HOD Ler or investor for about $ 20,000 from the long-term holder to the short-term holder. increase. They see value in these price ranges.
There are strong psychological buys from both short-term and long-term holders of 20, 30, and 40k. Currently, there is a large supply of long-term holders in the water. It will be interesting to see if short-term holders turn into long-term holders in the 40-50k range.
A cohort of shrimp with less than 1 Bitcoin has been constantly stacking sats across the price range. Shrimp seemed unaffected by price behavior and bought a significant amount of Bitcoin at current lower price levels compared to similar past price ranges. The black vertical bar shows the market price on the charting time stamp.
Interestingly, most exchange coins were purchased between $ 30,000 and $ 49,000, with very few, if any, over $ 40,000. This information is important in assessing the liquidity of exchanges that hold Bitcoin on their balance sheets. At the current $ 23,800 level, about 65% of the coins the exchange does not sell are underwater.
There are fewer purchases from exchanges under $ 30,000. However, about 350,000 BTC was purchased at the psychological level for $ 20,000, for a total of about $ 7 billion at the time of sale. Addresses with less than 10,000 Bitcoins mainly defended the level.
The following tweet by Professor Chain shows an animated version of the UDRP chart in chronological order.
peutaisément voircette dynamique prendre forme et l’offrechanger de propriété dèsque le prixa invalidélenive audes 20k $
Depuis, près de 2,6 Millions de BTC, soit 13,9% de l’offreencirculation on tétéé changésentre 17,8k $ et 22,5k $ pic.twitter.com/zIDsJWhCpz
— Professor Chaîne (@profchaine) July 28, 2022
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