September 25, 2022


Bitcoin experienced widespread volatility in 2022 as it fell significantly during this bear market. One aspect that has been appreciated recently is long-term shareholder sentiment. Selling pressure on LTHs eased as prices rose throughout July above the average base cost of $22.6K.

However, despite the reduction in financial constraints, LTHs continue to sell at net losses of between 11% and 61% on average. Could this selling pressure fuel the unexplained FUD in market sentiment as it tries to recover?

gather the crowd

Despite the uncertainty in the macro landscape, the cryptocurrency market has been gradually recovering since early July. Bitcoin itself has overseen steady growth during this period as it briefly touched the $24,000 level. However, concerns emerge after the latest episode of selling pressure from the group of long-term holders, such as mentioned by Glassnode.

Currently, long-term Bitcoin holders own over 13.337 million BTC, 79.85% of the total supply in circulation. However, since the beginning of May, they have distributed about 222 thousand bitcoins – equivalent to about 1.6% of their holdings at all.

Source: Glassnode

LTH’s cost basis is trading at $22.6K, at press time, which means long-term holdings are on average 4% profit. This is because BTC was trading at less than $23.2K at the time of writing. This means that the press-time MVRV represents the profitability of the long-term contract holders.

Source: Glassnode

There has also been a significant change in market sentiment for long-term holders over the past three weeks. Their overall behavior has changed from accumulating at a rate of 79 BTC/month to distributing as much as 47 thousand BTC/month.

As stated in the report,

Remarkably, this group took advantage of the price hike and spent 41,000 bitcoins, or 0.3% of supply, over the past 21 days. (Note that net expenditure is defined as accumulation plus HODLing minus distribution.) “

Source: Glassnode

“Bitcoin to the Moon”

Emotion He also noted an interesting development on social media among Bitcoin fans. Bitcoiners echoed their derisive chants of “moon” and “lambo” on social media during this year’s crypto segment.

However, sudden spikes in these words are often signs of a bullish rally for Bitcoin.

Source: Santiment

conclusion

The news also recently pointed to institutional sell-offs. Most famously, Tesla has recently sold more than 75% of its Bitcoin holdings.

While these indicators look to fuel FUD sentiment in the market, BTC continues to maintain its support level. Bitcoin has remained relatively unchanged over the past 24 hours, but is down more than 2.8% over the week.





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