Bitcoin hit a new all-time high of $67,276 two days ago and since then, something has changed. There has been a marked difference in investors’ behavior from hours before the ATH and hours after it.
In any case, it is playing in their favor as the profits gained from this will not only benefit long-term holders, but also the market in return.
Bitcoin holders in profit
Following the much-awaited ATH breach, long-term holders’ supply has begun declining to indicate that these holders are distributing.
However, this is not surprising because the market is expecting to sell anyway. This is because for a long time LTHs have been buying into weakness and selling into strength. The distribution we’re seeing right now will mark the return of short-term holders.
So, have LTHs pulled out completely?
Not really. Since the $67.2k all-time high, BTC has fallen by over 8% to trade at around $61k, at press time. Despite that, however, the strength selling continued. This resulted in a bit of the supply being overhead by about 1.59%.
What’s more, as is visible on the illiquid supply shock ratio chart, supply is still continuing to move to on-chain entities. These have projected minimal selling in the past (less than 0.25% of the supply they buy).
Ergo, this move by investors is for the benefit of the market since the hype surrounding the king coin has and will continue to bring in new investors.
And, the more supply LTHs distribute, the more they will realize profits and the chances of long-term holders increasing will improve. This will result in the market strengthening further.