Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

Keshav Verma

1 year ago

3 mins read

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Latest data from Glassnode shows Bitcoin long-term holders currently own around 90% of the total supply in profit.

Bitcoin Supply In Profit Share Of Short-Term Holders Declines

According to the latest weekly report from Glassnode, dominance of long-term holders has observed rise recently.

The relevant indicator here is the “supply in profit,” which measures the total number of coins that are currently holding a profit in the Bitcoin market.

The metric works by checking the on-chain history of each coin to see what price it was last sold at. If this previous price was less than the current one, then the coin has now accumulated some profit.

On the other hand, the last selling price being more than the latest value of the crypto would suggest the coin is holding a loss at the moment.

The supply in profit indicator naturally only measures the former type of coins. Now, here is a chart that shows what percentage of this supply in profit is owned by the long-term holders (LTHs):

Looks like the value of the indicator has observed some rise recently: Source: Glassnode's The Week Onchain - Week 23, 2022

LTHs only include those investors who have held their Bitcoin since at least 155 days without selling or moving them. The cohort that has been holding since days less than this threshold are called the “short-term holders” (STHs).

As you can see in the above graph, it seems like in the last few weeks the percentage of the supply in profit owned by LTHs crossed the 90% mark. This means that the share of STHs shrunk below 10%.

Such values of the indicator have also been seen a few times before in the history of the crypto. Usually, those previous instances have taken place during late-stage bear market periods.

The report notes that at these values the short-term holders are nearly at a peak pain level as they hold almost no unrealized profits.

If this past trend is anything to go by, then the current LTH supply in profit of around 90% may be a sign that the crypto has started to enter into a late bear market.

BTC Price

At the time of writing, Bitcoin’s price floats around $29.5k, down 6% in the last seven days. Over the past month, the crypto has lost 18% in value.

The below chart shows the trend in the price of the coin over the last five days.

The price of the crypto seems to have observed a sharp plunge down over the past day | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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