On-chain analyst Glassnode’s Long-Term Bitcoin Holders’ Degree of Unrealized Gains and Losses (LTH-NUPL) metric has recovered to pre-Terra crash levels. Will market performance enter a “belief” phase in January 2024?
On-chain analyst Glassnode’s Long-Term Bitcoin Holders’ Degree of Unrealized Gains and Losses (LTH-NUPL) metric has recovered to pre-Terra crash levels. Will market performance enter a “belief” phase in January 2024?
Bitcoin (BTC) Long-Term Holders’ Unrealized Gains Reach 55%
In mid-January 2024, the average long-term Bitcoin (BTC) holder’s unrealized profit jumped to 55%, which is “significantly positive,” shared on-chain expert Glassnode in the latest The Week Onchain report.
The last time Bitcoin “diamond hands” enjoyed such gains was at the beginning of the first quarter of 2022, before the Terra Luna ecosystem collapsed. Furthermore, such levels were recorded in July 2019, before “peak Xi,” and in August 2020, when crypto markets were activated by the first “TikTok bombs” of meme coins.
Meanwhile, some holders in this group decided to take advantage of the recent Bitcoin (BTC) boom and sell their assets at current prices. The supply of long-term holders has also dropped slightly from its ATH, declining by almost 75,000 BTC since November 2023.
However, this group of investors is still responsible for a whopping 76.3% of the coin supply in circulation. Three out of every four BTC in circulation are stored by long-term holders.
Before Q3 2023, this metric remained negative for over a year: passionate Bitcoiners (BTC) held their coins at a loss.
Bitcoin (BTC) Surprisingly Dropped Below Yearly Lows: Two Reasons
In the “rainbow” version of this chart, the metric moved out of the “Optimism/Anxiety” zone and into the “Belief” zone, which is associated with moderate optimism among investors.
At the same time, the long-awaited approval of the Bitcoin ETF in the US brought mixed signals to the Bitcoin (BTC) markets. After a surge, the BTC price fell to almost $40,000 on major spot exchanges.
According to Glassnode, a painful 18% price drop was driven by both unhealthy derivatives leverage dynamics and spot profit-taking by some traders.
At the time of this publication, Bitcoin (BTC) is changing hands at $42,600, or down 1.27% over the last 24 hours.
