Bitcoin’s recent correction has been significant after it reached $69,000 on November 10, an all-time high. BTC dropped by around 20% and reached a low point of $55,700 this week.
Large Bitcoin holders were optimistic about the future of BTC, however. Glassnode data shows that long-term Bitcoin owners have not panicked during the recent market correction.
The long-term BTC owners still have more than 13.4 millions coins. This is just 100,000 away of the record 13.5 million. Only 3% of total supply is held by long-term Bitcoin owners are at loss. The majority of losses are suffered by short-term holders who bought the cryptocurrency asset at the top of the market.
The change in profitable supply is a sign that the Bitcoin market has experienced a significant sell-off. It indicates how many coins have an average on-chain cost basis higher than the current price. Over 17% of BTC supply fell underwater since the ATH. This left 83% of the supply in profit. However, long-term holders are not spending their coins in panic despite a 20% correction (-$13.5k off the ATH). LTHs, which had topped at 13.5M BTC, have only distributed 100k BTC in the past month. This represents 0.7% of their total holdings,” Glassnode explained.
The BTC price dropped by approximately 20% but has quickly rebounded in the past 24 hours. In a matter of hours, the digital asset saw a jump of more than 8%. While Bitcoin’s future price movements are uncertain for short-term holders, long term holders appear determined to keep their digital assets.
“As a percentage of supply (excl. LTHs hold 78.7% profit and are a large proportion of supply (excl. LTHs are currently holding 3% of all supply at a loss. “STHs who purchased the top currently hold the bulk of all BTC at an undisclosed loss,” Glassnode said.