Data indicates that short-term Bitcoin (BTC) holders are feeling compelled to sell BTC at $30,000.
On June 28, Glassnode, an on-chain analytics firm, reported that tens of thousands of coins had been transferred to exchanges.
Bitcoin speculative exchange moves “intensifying”
The BTC price stagnating at $30,000 is causing investors who have made money this month to reconsider their strategies.
Short-term holders (STHs), those who are holding funds for 155 days or less, are increasingly displaying an inclination to sell.
Glassnode observed a marked rise in the amount of funds coming from STHs (belonging to Bitcoin’s more speculative investor groups) being deposited into exchange wallets for trading.
“The recent surge in Bitcoin prices has encouraged more short-term holders to become active on exchanges,” the report stated.
A chart accompanying the text distinguishes between the inflows currently being seen and those observed during the 2022 bear market.
STHs tend to offload their holdings in large amounts during times when Bitcoin prices are low, in order to reduce their losses. Conversely, when BTC/USD returns to the $30,000 level, as it did in March and now, the resulting profit-taking leads to lower exchange volumes.
Realizing 10% gains
The data suggests that speculation regarding Bitcoin is unpredictable and greatly affected by even minor changes in price.
Bitcoin price remains close to $30K as Federal Reserve Chairman Powell emphasizes further rate increases.
Despite this, STHs have become a significant market influence in 2023.
As previously reported by Glassnode and Cointelegraph, their combined cost basis – which was around $26,500 earlier this month – has held steady and serves as a support level.
Meanwhile, analysis of the blockchain suggests that if the value of BTC increases again, the temptation to cash out could become overwhelming.
Historical evidence has demonstrated that when the overall profitability of something reaches 20%, selling commences, and with their current breakeven point of $26,500, any amount higher than $33,000 could cause a considerable change in the composition of holders.
Current data indicates that profitability for STH is approximately 10%, with its realized price, or the price at which the STH coins were last sold, surpassing $27,000.
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