Bitrabo Editorial
Recent on-chain data indicates that Bitcoin long-term holders (LTHs) are not overly concerned about the current market fear, uncertainty and doubt (FUD) and are keeping their exchange inflows very low.
Bitcoin LTHs Exchange Inflows Have Been Low
According to Glassnode, an on-chain analytics firm, LTHs have only deposited about 0.004% of their supply to exchanges lately. These investors are defined as users who have held onto their Bitcoin for more than 155 days.
The LTH group is one of two major segments in the Bitcoin market, with the other being short-term holders (STHs) who obtained their bitcoin less than 155 days ago.
Historically, LTHs have been found to be less prone to sell off their coins than STHs. This makes LTHs more resilient, earning them the moniker “diamond hands.”
The SEC’s recent regulatory pressure on cryptocurrency exchanges Binance and Coinbase has created uncertainty in the market, and STHs could be expected to be dumping their holdings. Conversely, LTHs are expected to demonstrate a stronger conviction.
To evaluate how LTHs are managing with the recent situation, Glassnode evaluated exchange inflow data for LTHs.
The following graph shows the recent behavior of LTHs:
The above chart represents the percentage of LTHs’ combined supply held in exchange inflows. Data reveals that the indicator’s value has been low lately, indicating that LTHs are participating in minimal selling. Currently, LTHs make deposits totaling only 0.004% of their supply.
Previous significant sell-offs have seen LTHs depositing at least 10 times the percentage of their supply observed recently. Therefore, unlike previous market uncertainty events, LTHs appear to be unaffected by the present market distress.
BTC Price
Bitcoin is trading around $25,900 at the time of writing, indicating a 3% decline in the past week.
This article was originally published on bitrabo.com.