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The Market Crashed, But Long-Term Bitcoin Holders Remain Largely Unaffected: Glassnode

The Market Crashed, But Long-Term Bitcoin Holders Remain Largely Unaffected: Glassnode
© Copyright Image: The Crypto Basic

Bitcoin long-term holders continue to reap the reward of their diamond-handed approach, with the latest crash barely affecting their profitability.The pioneering cryptocurrency experienced considerable sell-offs among investors due to market uncertainties. Spurred by growing uncertainties about the outcome of Donald Trump's tariffs on imports from Mexico, Canada and China, users fled to caution.Meanwhile, the macroeconomic headwind pushed Bitcoin to an intraday low of $91,281 today before rebounding considerably from the region. Nonetheless, the price struggle wiped over $2.22 billion from the crypto market in 24 hours.Amid the uncertainties, long-term holders (LTHs)wallets that have held Bitcoin for at least 155 dayshave remained largely untroubled, according to Glassnode. The unique wallet addresses were almost exempted from the crash, as their stash barely recorded losses.Less Than 0.01% of Diamond Hands in LossNotably, just a negligible fraction of long-term holders felt the dip. Per Coinglass, less than 0.01% of wallets in that category were at a loss.

Long-Term Bitcoin Holders
Notwithstanding, the LTHs saw their unrealized profits decline substantially. This trend has contributed to the decline in profitability among these diamond-handed wallets since November, with their profit shares now at their lowest levels in five months.The analysis suggested that a slowdown in new accumulations among LTHs caused this trend, which could reverse immediately if they resumed buying. Meanwhile, Coinglass suggested that until then, short-term holders will dictate the market structure.Short-Term Holders in the Red
Short-Term Bitcoin Holders
In contrast, data from Coinglass shows that Bitcoins drop below the psychological $100,000 price mark caused short-term holders (STHs) to suffer a considerable loss. At $97,000, the supply held by these addresses was evenly split between profit and loss.The groups profit-to-loss ratio stood evenly at 11%, with the dip sparking the largest loss exposure for short-term holders since early last month. The last time this class of addresses saw such distribution was during Bitcoins crash to $89,397 on January 13.In the meantime, Bitcoin continues to show signs of price weakness. The asset trades at $94,893, down 3% in the past 24 hours.

Read more: https://thecryptobasic.com/2025/02/03/the-market-crashed-but-long-term-bitcoin-holders-remain-largely-unaffected-glassnode/?utm_source=rss&utm_medium=rss&utm_campaign=the-market-crashed-but-long-term-bitcoin-holders-remain-largely-unaffected-glassnode

Text source: The Crypto Basic

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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