{"id":151601,"date":"2023-09-07T20:24:59","date_gmt":"2023-09-07T14:54:59","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=151601"},"modified":"2023-09-07T20:24:59","modified_gmt":"2023-09-07T14:54:59","slug":"short-term-holders-bear-the-brunt-of-bitcoins-volatility-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/short-term-holders-bear-the-brunt-of-bitcoins-volatility-crypto-news\/","title":{"rendered":"Short-term holders bear the brunt of Bitcoin\u2019s volatility – Crypto News"},"content":{"rendered":"

<\/p>\n

Bitcoin\u2019s<\/a> drop from $29,000 in mid-August has significantly changed market dynamics. Despite the short-lived jump to $27,000 following the news about Grayscale\u2019s win against the SEC<\/a>, Bitcoin is still hovering around $25,700.<\/p>\n

Graph showing Bitcoin\u2019s price from Aug. 1 to Sep. 7, 2023 (Source: CryptoSlate BTC<\/a>)<\/figcaption><\/figure>\n

A deeper dive into on-chain metrics reveals that this downward pressure primarily comes from short-term holders<\/a> offloading their assets.<\/p>\n

One of the most telling metrics in this scenario is the short-term holder percent transfer volume in profit. This metric offers insights into the bias of on-chain value settled by short-term holders, either in profit or loss.<\/p>\n

A positive value indicates that over 50% of the short-term holder transfer volume is in profit, while a negative value suggests the opposite, signaling that more than half of the short-term holder transfer volume is in loss.<\/p>\n

Data from Glassnode shows a dip in the STH transfer volume profit correlating with Bitcoin\u2019s decline from $29,400. As of Sep. 6, the STH transfer volume bias stood at \u201323.5 %, indicating that a significant portion of the transfer volume from short-term holders was at a loss.<\/p>\n

\"Short-Term
Graph showing the short-term holder percent transfer volume in profit from June to September 2023 (Source: Glassnode<\/a>)<\/figcaption><\/figure>\n

Contrastingly, long-term holders exhibit a more resilient stance. Their metrics began to show transfers in loss only as of Sep. 3. By Sep. 6, the long-term holder percent transfer volume bias was recorded at -5.5%, indicating that most long-term holders remain in profit despite the market\u2019s recent turbulence.<\/p>\n

\"long-term
Graph showing the long-term holder percent transfer volume in profit from June to September 2023 (Source: Glassnode<\/a>)<\/figcaption><\/figure>\n

Another metric worth noting is the short-term holder spent volume as a percentage of held supply. This metric showcases the proportion of on-chain transfer volume by short-term holders relative to their total maintained supply. Historically, significant movements in this metric have been associated with high-volatility events. On Sept. 3, 3.1% of the total short-term holder supply transacted at a loss. The last time such a high percentage was observed was in mid-March, correlating with Bitcoin\u2019s price plummeting from $23,000 to $20,000.<\/p>\n

\"short-term
Graph showing short-term holder spent volume as a percent of held supply YTD (Source: Glassnode<\/a>)<\/figcaption><\/figure>\n

The heightened selling pressure from short-term holders could indicate a lack of confidence in Bitcoin\u2019s short-term price trajectory. However, the resilience shown by long-term holders suggests a continued belief in Bitcoin\u2019s long-term value.<\/p>\n

The post Short-term holders bear the brunt of Bitcoin\u2019s volatility<\/a> appeared first on CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin\u2019s drop from $29,000 in mid-August has significantly changed market dynamics. Despite the short-lived jump to $27,000 following the news about Grayscale\u2019s win against the SEC, Bitcoin is still hovering around $25,700. Graph showing Bitcoin\u2019s price from Aug. 1 to Sep. 7, 2023 (Source: CryptoSlate BTC) A deeper dive into on-chain metrics reveals that this […]<\/p>\n","protected":false},"author":2,"featured_media":151602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-151601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=151601"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151601\/revisions"}],"predecessor-version":[{"id":151604,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151601\/revisions\/151604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/151602"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=151601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=151601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=151601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}