Long-term Bitcoin holders refuse to sell during the deepest correction of the current Bitcoin price cycle. Blockchain data analysis platform Glassnode shared positive news about Bitcoin investors’ resilience in the latest issue of its weekly newsletter, The Week Onchain. Bitcoin may be experiencing its heaviest drop in the current bull market, but investors known as diamond hands show no signs of panic.
What Is Happening on the Bitcoin Front?
Glassnode analysts suggest that looking at performance indexed to the Bitcoin halving date, the current cycle is one of the worst-performing. Analysts stated:
“This is the first time this has happened despite the market breaching a new cyclical ATH before the halving event in April.”
Contrary to some well-known recent capitulation events in Bitcoin’s history, Glassnode shows that long-term holders are sitting on their assets. Even the recent journey of the BTC/USD pair to a four-month low of $53,500 did not shake their resolve. The newsletter shared the following statements on the subject:
“Looking at the losses locked in by both long-term and short-term holders, we see that this week’s loss-taking events accounted for less than 36% of the total capital flow in the Bitcoin network.”
“Major capitulation events like the sales in September 2019, March 2020, and May 2021 saw more than 60% of capital flows consisting of losses over a few weeks, with both groups contributing significantly.”
Details on the Subject
Long-term and short-term holders refer to Bitcoin wallet assets held for more than 155 days or less, respectively. The latter term reflects the more speculative end of the Bitcoin investor spectrum. Glassnode produced a chart showing the notable absence of long-term holder participation in on-chain sales at a loss during the Bitcoin price drop. In a part of the closing remarks, analysts explained the subject with these statements:
“After 18 months of only upward price movement following the FTX bankruptcy and 3 months of indifferent sideways trading, the market endured the deepest correction in the cycle. However, the declines in our current cycle remain positive compared to historical cycles, indicating a relatively solid underlying market structure.”
