The Report Suggests That the Majority of Bitcoin Investors Who Bought at the All-Time High Have Sold
Bitcoin came dangerously close to reaching $69,000 in November. According to new statistics, the majority of those who purchased at the market’s peak have subsequently sold.
It’s been over four months since Bitcoin nearly reached $69,000—an all-time high—and a new analysis indicates that the majority of top-of-the-market purchasers have now liquidated their holdings.
According to on-chain analytics service Glassnode, more than half of the coins originally purchased for around $60,000 have been resold for approximately $35,000 to $38,000. Meanwhile, several evidence indicated that long-term holders’ hands remained impressively strong, especially in the midst of global strife.
The Glassnode analysis compared the UTXO Realized Price Distribution (URPD) of Bitcoin on major days last year to today. URPD effectively keeps track of the prices at which current Bitcoin was last transferred to the blockchain. This information may be important in determining how many purchasers profited—or ended themselves underwater.
For instance, on May 10, Bitcoin URPD was highly concentrated in the $54,000 to $60,000 area, followed by a significant price decrease, which Glassnode characterised as a “weak hand to strong hand distribution event,” implying that fresher purchases sold to more experienced holders.
When Bitcoin returned to comparable highs in November, URPD was more equally divided between $35,000, $47,000, and $62,000. Many investors who purchased between May and July profitably sold BTC between August and November, the research showed.
Despite Bitcoin’s gradual, steady slide below $40,000 in the months that followed, the distribution structure has largely stayed intact. However, to the extent that redistribution occurred, it was as a result of $60,000 purchases capitulating to other holders around $35,000.
“This spending behaviour is consistent with a market dominated by price agnostic HODLers who are hesitant to sell their coins, even if they are holding them at a loss,” the paper said. “Meanwhile, top purchasers have been greatly diluted, and now account for a far lower share of the investment cohort than they did in May-July 2021.”
Other evidence indicates that HODLers, a phrase used in the crypto industry to refer to committed long-term investors, are staying steady, despite the flushing of other market players. For example, exchange withdrawal levels have been stable since July, while deposit levels continue to decline—indicating that the market is becoming more controlled by purchasers who do not intend to sell anytime soon.