Looking at on-chain data shows apparent differences in how short-term and long-term holders invest in Bitcoin. Short-term holders have been mainly buying between the $17k – $48K levels, whereas long-term holders are strong up to $60k.
We can analyze some key graphs to understand the data better. UTXO Realized Price Distribution (URPD) shows at which prices the current set of Bitcoin UTXOs were created. Each bar indicates the number of existing bitcoins that last moved within that specified price bucket. The price specified on the x-axis refers to the lower bound of that bucket.
Following the 75% drawdown from the all-time high this year, 11.5% of the supply is currently held around the $17k price level. The increase in holdings between $17k and $24k may indicate a lot of demand has been swept up. Below $17.6k, all coins that have not moved must be defined as long-term holders, as Bitcoin has not dropped below this price since 2020. However, these investors can be considered mature long-term holders. The coins are lost or owners are unwilling to sell up to this point.
Figure: 1 | Source: Glassnode
The following chart shows the type of cohorts buying at these price levels. The entity-adjusted version of the URPD Metric offers the supply segmented by Long-Term Holders (blue), Short-Term Holders (red), and Exchange balances (grey). All supply is shown in the price bucket at which the respective entity has (on average) acquired its coins.
Concerning Short Term Holders (holding BTC for less than 155 days), you can see the transfer of ownership from long to short-term holders around the $20k, from long-term holders capitulation sellers to HODLers or investors. They see value in these price ranges.
There has strong buying at psychological levels from both short and long-term holders at 20,30 and 40k. There is a lot of long-term holder supply currently underwater. It will be interesting to watch if short-term holders convert to long-term holders around the 40-50k range.
Shrimp cohorts with less than 1 Bitcoin have been stacking Sats relentlessly throughout the price ranges….