Bitcoin investors with “diamond hands” are not behaving as though the price of BTC has reached its all-time high of $73,800, according to new research from on-chain analytics firm Glassnode. The research, published on May 28, shows that the selling pressure from long-term holders (LTHs) is only half as intense as it was during previous bull market peaks. Despite being in profit by an average of 3.5 times, LTHs are not selling BTC at a rate that would make the current bull market unsustainable. Glassnode explains that as prices increase due to renewed buying pressure, the importance of sell-side pressure from LTHs also grows. LTHs are wallets that have held BTC for 155 days or more and represent the less speculative end of the Bitcoin investor spectrum. Glassnode’s analysis using the market value to realized value (MVRV) metric suggests that LTHs will soon reach historically high levels of unrealized profit. The transition phase between a bear and bull market typically sees LTHs trade above 1.5 but below 3.5, and can last for one to two years. However, when considering the latest all-time high in March, there is room for optimism if BTC price discovery returns. Even at the $73,800 peak, LTHs were not selling to the market as heavily as they did during previous bull market blow-off tops. The report also notes ongoing selling by investors in the Grayscale Bitcoin Trust (GBTC), although it sees LTHs continuing their investment trend since the end of last year. The report concludes that sell-side pressure from LTHs has noticeably decreased since the distribution into the $73,000 all-time high. It is important to note that this article does not provide investment advice or recommendations and readers should conduct their own research before making any investment decisions.
Research reveals Bitcoin 'diamond hands' reduce selling by almost 50% at $73.8K