Bitcoin’s (BTC) correction from an all-time high around $64,800 to around $47,000 and then back up to $55,000 at press time has shaken out short-term traders. But long-term holders remain unmoved.
That’s according to a new report by Glassnode, a cryptocurrency analytics firm specializing in blockchain data, published on Monday.
“This correction has largely affected relatively newer entrants to the market, and strong hands remain strong,” wrote Glassnode.
- BTC held for longer than one month are deemed “old coins” and represent a very small and declining proportion of the total transaction flow, according to Glassnode.
- Conversely, the number of “young coins” held for less than one week before being spent saw an uptick toward the end of last week, “suggesting newer market entrants were shaken out during this correction.”
- “Notably, coins older than six months have not seen a meaningful increase in spending since the correction back in February.”
- “Old hands remain confident despite volatility and higher prices creating incentive to take profits,” wrote Glassnode.
- Previous instances of similar spending behavior were seen around market turning points such as December 2000, which preceded a breakout in BTC to new all-time highs, and during the January 2021 correction.