The level of unrealized profits and losses held by on-chain analyst Glassnode’s Bitcoin Long-Term Holders (LTH-NUPL) metric has returned to pre-Terra collapse levels. Will market performance enter a “belief” phase in January 2024?
Long-Term Bitcoin (BTC) Holders’ Unrealized Profit Reaches 55%
As of mid-January 2024, the average long-term Bitcoin (BTC) holder’s unrealized profit rose to 55%, a “significantly positive” figure, on-chain expert Glassnode said in The Week Onchain’s latest report .
The degree of unrealized profits and losses held by long-term #Bitcoin holders can be measured by LTH-NUPL.
This metric hit 0.55 this week, which is significantly positive and places the average long-term investor with an unrealized profit of 55%. pic.twitter.com/bua4HBLazn
— glassnode (@glassnode) January 17, 2024
The last time Bitcoin’s “diamond hands” enjoyed such profits was early in the first quarter of 2022, before the Terra Luna ecosystem collapsed. Furthermore, such levels were recorded in July 2019, before the “Xi peak”, and in August 2020, when cryptocurrency markets were triggered by the first “TikTok pumps” of meme coins.
Meanwhile, some holders of this group have decided to take advantage of the recent surge in Bitcoin (BTC) and sell their assets at current prices. Long-term holder supply has also slightly lost its all-time high, decreasing by nearly 75,000 BTC since November 2023.
However, this group of investors is still responsible for as much as 76.3% of the circulating coin supply. Three out of four BTC in circulation are held by long-term holders.
Before the third quarter of 2023, this parameter remained negative for over a year: passionate Bitcoiners (BTC) held their coins at a loss.
Bitcoin (BTC) has surprisingly fallen below its year-to-date lows: two reasons
In the “rainbow” version of this chart, the metric has left the “Optimism/Anxiety” zone and entered the “Conviction” zone, which is associated with moderate optimism among investors.
At the same time, the long-awaited approval of the Bitcoin ETF in the United States has brought mixed signals to the Bitcoin (BTC) markets. After a surge, BTC price dropped to nearly $40,000 on major spot exchanges.
According to Glassnode, a painful 18% price drop was caused by both unhealthy derivatives leverage dynamics and spot profit-taking by some traders.
As of press time, Bitcoin (BTC) is trading at $42,600, down 1.27% over the past 24 hours.
