Originally published on: October 06, 2024
As the value of hodlers’ Bitcoin exposure drops significantly, analysts suggest that selling pressure may weaken the price of Bitcoin. New research from CryptoQuant reveals a shift in market sentiment, with long-term holders (LTHs) reducing their BTC exposure while short-term holders (STHs) increase their stake.
According to the data, there has been a sharp $6 billion decrease in the LTH realized cap, indicating that seasoned hodlers are possibly taking profits or closing their buying positions. On the other hand, short-term holders have seen a $6 billion increase in their realized cap, suggesting that they are taking on more risk or increasing their buying positions.
The interaction between the realized price of BTC moving within one day to one week and the spot price of Bitcoin is seen as a significant indicator for traders. The close correlation between these two prices suggests that market participants are closely monitoring this level.
Recent data also highlights a surge in exchange withdrawals, the largest since November 2022, pointing to heightened trading activity and potential market volatility.
While these findings are insightful, it’s important to note that this article does not provide investment advice. Readers should conduct their own research and analysis before making any financial decisions in the volatile cryptocurrency market. Stay informed and proactive to navigate the ever-changing landscape of Bitcoin trading.
