Over 300,000 BTC Now Owned by Bitcoin Buyers Who Bought at Recent Lows: Glassnode Report

In accordance Glass nodeduring the recent sell-off in the cryptocurrency market, Bitcoin moved from weaker hands to those entering the lows.

A pool of buyers who entered at the lows is indicated by a constructive deviation for short-term owners, according to the chain’s research firm. It claims that this group of individuals currently has around 300,000 BTC which they bought at a far lower price.

After a dramatic capitulation event, the ownership structure of #Bitcoin has been reshaped.

As markets sell off, $BTC migrating from weaker hands, to those entering the lowest. Here we explore how we can track this migration of coins using age groups.

— glassnode (@glassnode) 15 August 2022

Although fluctuating within a range, Bitcoin prices have risen from their August 1 low of $22,392 to their August 15 low of $25,214. BTC’s price at the time of publication was $24,117.

Since LUNA’s collapse in May, according to Glassnode, there has been a net outflow of -300,000 BTC from long-term Bitcoin holders (LTHs) and exchanges in favor of short-term holders (STHs).

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Since the November 2021 ATH, the Long Term Holder (LTH) supply has been somewhat limited to between 13.56 million and 13.27 million BTC, falling by only 300,000 BTC. This shows that the cohort’s inflow and outflow dynamics are generally balanced.

Conversely, the supply of Bitcoin held by short-term holders has increased by 330,000 BTC as a result.

The increase in the short-term holder (STH) supply refers to the accumulation of buyers who came in during the washout and now have coins with a significantly lower cost base. An increase in the number of coins belonging to the short-term owner cohort refers in this context to bear market floor buyers. According to historical precedents, this is a departure, as this type of holder is typically adept at buying tops and selling bottoms.

Bitcoin remains in accumulation

Through distribution and accumulation cycles, the amount of supply that has been dormant for at least a year can be used to illuminate the cyclical nature of Bitcoin.

Supply Active 1+ year is currently barely below the previous ATH of 65% set in May 2022. This demonstrates the strong conviction of buyers between May and July 2021, following a massive mine migration. Bear markets are characterized by cycles of accumulation as “HODLing” eventually takes over as the dominant dynamic. This leads to an increase in the offer older than one year.

According to the equilibrium during the previous three months, coin maturation and consumption are in harmony. In a bear market, this can be seen as a positive mechanism.