A large volume of coins belonging to the long-term bitcoin holder cohort are being held at a loss. After taking a closer look, onchain analysts at Glassnode say that this metric can be deceptive.
Data shows that the long-term holder to short-term holder ratio of bitcoin’s supply sits at 5.4 — the highest level since mid-2021. Alongside that, however, is a notable uptick in the amount of long-term holders at an unrealized loss.
“This can be attributed to coins acquired in close proximity to the $73k ATH [all-time high], which are now beginning to mature across the 155-day threshold,” said Glassnode.
Breaking it down further, the Glassnode analysts found that this cohort of long-term holders now accounts for 47.4% of all coins in the loss. Even in these circumstances, the analysts noted that the magnitude of “paper” losses were relatively small.
“This is a constructive observation as it suggests that while many ‘top buyers’ are technically underwater on their holdings, the scale of their portfolio drawdown is relatively small, and the financial pressure may be interpreted as minimal,” they said.
Based on historical patterns, this would suggest that bitcoin holders have entered a “re-accumulation” phase.
The price of bitcoin has fallen 6.36% in the last week — a slow start to the month of October, typically one of bitcoin’s best months. At the time of writing, bitcoin was trading at $61,300 with a daily trading volume of $34 billion.
