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Bitcoin Veterans Lock in Profits: Why 40% of Gains Are Being Taken Despite Low Trading Volume


LTHs and Profit-Taking
According to Glassnode's data, LTHs have been responsible for a large majority of Bitcoin's realized profits (profits made from selling BTC at a higher price than what was bought) since the beginning of 2021. In fact, LTHs have taken profits on over 90% of the days this year, with an average of 1,176 BTC being sold per day. This indicates that LTHs are actively capitalizing on market highs and potentially securing their gains. This behavior is in stark contrast to short-term holders, who tend to sell at a loss during market downturns. The Role of LTHs in Market Cycles
The data also suggests that LTHs play a crucial role in Bitcoin's market cycles. During bull runs, LTHs tend to take profits and sell their BTC, resulting in a decrease in BTC supply and potentially driving up the price. On the other hand, during bear markets, LTHs are less likely to sell, leading to a decrease in selling pressure and potentially stabilizing the market. This highlights the importance of LTHs in maintaining the overall health and stability of the Bitcoin market. Implications for Investors
For investors, understanding the behavior of LTHs can provide valuable insights into market trends and potential price movements. By keeping an eye on LTHs' profit-taking patterns, investors can better gauge market sentiment and make more informed decisions about their own investments. Additionally, LTHs' active involvement in profit-taking may also indicate a strong belief in Bitcoin's long-term potential and value. Trending Hashtags and Crypto Tickers
#Bitcoin #BTC #Glassnode #LongTermHolders #LTHs #ProfitTaking #MarketCycles #Investing #CryptoInsights #BitcoinMarket #CryptoTickers #BitcoinInvestors #CryptoNews


Sentiment Result : Neutral

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