Data Reveals Short-Term Bitcoin Holders Refuse To Sell Despite SEC Crackdown

Samuel Edyme

1 year ago

3 mins read

Diamond Hands: Short-term Bitcoin holders refuse to sell

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Amid ongoing regulatory scrutiny and fear, uncertainty, and doubt (FUD) surrounding Bitcoin (BTC), short-term holders who are often known to be the first to sell off their assets when prices decline have displayed unusual resilience in the face of the current market challenges.

According to the latest data, these holders are bucking the trend and choosing to stay in the market, indicating their confidence in Bitcoin’s future profitability.

Short-Term Holders Display Resilience Amid Regulatory Challenges

According to an analysis from CryptoQuant, Bitcoin’s lackluster price performance within the $25,000-$30,000 range has not dampened the enthusiasm of short-term holders. The Short-Term Holder Spent Output Profit Ratio (SOPR) metric reveals their interest in remaining in the market and seeking profitability.

The persistence of this metric over consecutive months, coupled with short-term holders’ pocket value surpassing a specific threshold, indicates their commitment to staying invested. CryptoQuant further reveals this pattern mirrors previous price cycles, such as those witnessed in 2015 and 2019, where short-term holders maintained their positions and reaped long-term rewards.

Notably, the current cycle’s profitability for both long-term and short-term holders has not yet reached levels that trigger significant selling pressure. This trend suggests that Bitcoin still has room for growth and the potential for another wave of demand.

Despite ongoing regulatory challenges and negative market sentiment, short-term holders remain undeterred, holding on to their Bitcoin investments with optimism. Moreover, Glassnode data has further supported the resilience of short-term holders, revealing a recent uptick in hodling activity.

According to the data, after a period of active selling in the previous month, short-term holders have shown a renewed commitment to retaining their Bitcoin holdings. This shift in sentiment indicates their belief in the future potential of Bitcoin, even in the face of regulatory uncertainties.

Long-Term Holders Maintain Confidence In Bitcoin

Meanwhile, long-term Bitcoin holders have also demonstrated confidence in the cryptocurrency, in addition to short-term holders being unfazed. These holders have shown minimal movement of their tokens to centralized exchanges, highlighting their commitment to holding their Bitcoin assets for the long term.

By maintaining their positions and avoiding panic selling, long-term holders contribute to the overall stability of the market and reinforce the positive outlook for Bitcoin. Regardless, over the past week, Bitcoin has faced a significant price plunge, causing its market value to dip below $26,000, marking a decrease of 2.9%.

This downward trend can be attributed to the prevailing negative sentiment in the crypto market, which has been further intensified by the recent Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase, two of the world’s leading cryptocurrency exchanges.

However, despite this decline, the largest cryptocurrency by market capitalization has shown a slight uptick of 0.2% in the last 24 hours.

In contrast, BTC is trading at $25,826, reflecting a notable drop in value compared to its price of above $27,000 just a week ago.

Bitcoin (BTC)’s price chart on TradingView — Bitcoin (BTC)’s price moving sideways on the 4-hour chart. Source: BTC/USD on TradingView.com

Featured image from Unsplash, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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