Bitcoin faces potential selling pressure as the dollar value of long-term holders’ (LTH) BTC exposure declines by billions of dollars.
New research from onchain analytics platform CryptoQuant reveals that while speculators are stepping in, seasoned holders are becoming more risk-averse.
Bitcoin long-term holders, who have held BTC for 155 days or more, appear to be taking profits amid growing enthusiasm for Bitcoin reaching all-time highs.
CryptoQuant analyzed the net position change of LTH entities and found a “sharp decrease” in their BTC exposure.
“There has been a recent sharp decrease of $6 billion (from $19 billion to $12 billion) in the LTH realized cap, suggesting that long-term holders are likely taking profits or closing buying positions,” CryptoQuant contributor Amr Taha noted, accompanied by an illustrative chart.
This chart displays the net change in the LTH realized cap, which is the sum price at which long-term holders’ coins last moved.
In contrast, short-term holders (STHs), who have held BTC for up to 155 days, are increasing their positions.
“Conversely, the STH realized cap has seen a recent sharp increase of $6 billion, moving from -$17 billion to -$11 billion, indicating that short-term holders are likely taking on more risk or increasing their buying positions,” Taha continued.
Additional analysis highlights close interaction between the realized price of BTC moving within one day to one week ago — the “hottest” part of the BTC supply — and the Bitcoin spot price.
At the time of writing, the one-day to one-week realized price was $62,080, nearly identical to spot BTC/USD.
Taha concluded, “These rejections could imply that momentum is weakening after these price attempts to stay above the realized price, potentially leading to short-term corrections.”
