After touching an all-time high of $69,000 on 10 November, Bitcoin saw a major correction during the last few days. BTC dipped by approximately 20% within this week and reached a low of $55,700.
However, large Bitcoin holders remained positive about the future of BTC. The data published by Glassnode shows that long-term Bitcoin holders avoided panic selling during the recent market correction.
Long-term BTC holders are still holding more than 13.4 million coins, just 100,000 away from the all-time high level of 13.5 million. Only 3% of the overall supply held by long-term Bitcoin holders is at a loss. In terms of short-term holders, people who purchased the crypto asset around the recent top are suffering the majority of the losses.
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“When the Bitcoin market experiences a large sell-off, the change in profitable supply indicates of how many coins have an on-chain cost basis above the current price. Since the ATH, over 17% of the BTC supply has fallen underwater, leaving 83% of the supply in profit. However, even after a near 20% correction (-$13.5k) off the ATH, Long-Term Holders do not appear to be spending their coins in panic. After peaking at 13.5M BTC, LTHs have only distributed 100k BTC over the last month, representing just 0.7% of their total holdings,” Glassnode explained.
After a drop of approximately 20%, the BTC price rebounded quickly in the last 24 hours. The digital asset jumped by more than 8% within a single day. While short-term holders remain uncertain about the future price movements of Bitcoin, long-term holders look set to hold on to their digital assets.
“As a proportion of supply (excl. exchanges), the vast majority of LTHs remain in profit, holding 78.7% of BTC in profit. Only 3% of the supply is held by LTHs at a loss. STHs who bought the top currently hold the majority of all BTC at an unrealized loss,” Glassnode added