{"id":13137,"date":"2023-09-07T15:17:19","date_gmt":"2023-09-07T15:17:19","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=13137"},"modified":"2023-09-07T15:17:20","modified_gmt":"2023-09-07T15:17:20","slug":"short-term-holders-bear-the-brunt-of-bitcoins-volatility","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13137","title":{"rendered":"Short-term holders bear the brunt of Bitcoin\u2019s volatility"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p class=\"p1\">Bitcoin&#8217;s 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&#8217;s win against the SEC, Bitcoin is still hovering around $25,700.<\/p>\n<p>Graph showing Bitcoin&#8217;s price from Aug. 1 to Sep. 7, 2023 (Source: CryptoSlate BTC)<\/p>\n<p class=\"p3\">A deeper dive into on-chain metrics reveals that this downward pressure primarily comes from short-term holders offloading their assets.<\/p>\n<p class=\"p3\">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<p class=\"p3\">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<p class=\"p3\">Data from Glassnode shows a dip in the STH transfer volume profit correlating with Bitcoin&#8217;s decline from $29,400. As of Sep. 6, the STH transfer volume bias stood at &#8211;23.5 %, indicating that a significant portion of the transfer volume from short-term holders was at a loss.<\/p>\n<p>Graph showing the short-term holder percent transfer volume in profit from June to September 2023 (Source: Glassnode)<\/p>\n<p class=\"p3\">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&#8217;s recent turbulence.<\/p>\n<p>Graph showing the long-term holder percent transfer volume in profit from June to September 2023 (Source: Glassnode)<\/p>\n<p class=\"p3\">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&#8217;s price plummeting from $23,000 to $20,000.<\/p>\n<p>Graph showing short-term holder spent volume as a percent of held supply YTD (Source: Glassnode)<\/p>\n<p class=\"p3\">The heightened selling pressure from short-term holders could indicate a lack of confidence in Bitcoin&#8217;s short-term price trajectory. However, the resilience shown by long-term holders suggests a continued belief in Bitcoin&#8217;s long-term value.<\/p>\n<p>The post Short-term holders bear the brunt of Bitcoin\u2019s volatility appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/short-term-holders-bear-the-brunt-of-bitcoins-volatility\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin&#8217;s 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&#8217;s win against the SEC, Bitcoin is still hovering around $25,700. Graph showing Bitcoin&#8217;s price from Aug. 1 to Sep. 7, 2023 (Source: CryptoSlate BTC) A deeper dive into on-chain metrics reveals that this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-13137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13137"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13137\/revisions"}],"predecessor-version":[{"id":13139,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13137\/revisions\/13139"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13138"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}