Understanding Short-term and Long-term Bitcoin Holders
Short-term holders (STHs) refer to investors who have recently acquired Bitcoin, typically within the last 155 days. In contrast, long-term holders (LTHs) are those who have maintained their Bitcoin investments for a longer period.
Impact of Bitcoin ETF Launch on Holder Classification
The launch of the Bitcoin ETF in the US on January 11, approximately 172 days ago, led to a shift in holder categorization. Investors who purchased Bitcoin around this time are now classified as LTHs.
Financial Insights for Long-term Holders
Long-term holders (LTHs) have an average cost basis of $58,049. With Bitcoin currently trading above $62,000, these investors are enjoying a return of approximately 7%. LTHs typically exhibit lower sensitivity to short-term market fluctuations compared to STHs.
Market Resilience and Strategic Insights
During a recent 20% correction in Bitcoin prices starting from June 7, LTHs maintained a strong position with an average cost basis of $57,600. Despite market volatility, these holders continued to accumulate Bitcoin, demonstrating a “buy the dip” strategy.
Similarly, when Bitcoin prices dropped to $56,500 on May 1, LTHs maintained support with an average cost basis of $56,300. This behavior underscores the strategic and resilient approach of long-term Bitcoin investors during market downturns.
Bitcoin: Exchange Average Withdrawal Price (by year): (Source: Glassnode)
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