It was a strong week for bitcoin as the Price opened at the weekly low of $48,918 and bounced back to a new all-time high of $61,683 over the weekend.
Glassnode’s March 15 The Week On-Chain report points at the spending behavior of bitcoin and how the market participants are responding to the sudden surge in the bitcoin price.
The report suggests that the LTH spending in the bull run is comparatively less and only 5% of spent outputs are more than 90 days old. It was observed that mostly young coins were moved in the past few months and more than 95% of spent outputs are younger than 3 months old. It also noted that LTHs are actually hodling more coins than in prior market cycles.
In general, glassnodes’ way of distinction between Long Term Holders (LTH) was those who owned coins older than 155 days, and Short Term Holders (STH) owning coins younger than 155 days. Once a coin passes the 155 day limit it becomes an LTH held coin.
LTH have better and greater knowledge about bitcoin and have high conviction in the asset. They spend on BTC in bearish markets and offload the same during the bull runs. While STH are new to the market and are sensitive to price volatility and are more likely to spend coins soon after their latest transaction.
Currently the reports and statistics state that 58% of Bitcoin’s circulating supply are in profit, and that is 10.85 million bitcoins while 5.3 million BTC are currently in profit and held by STH wallets. This paints a picture that STH demand remains strong and intact. Many new retail traders have entered the markets and there is a spike in the number of new entities.
They also released this week’s bitcoin miners revenue as miner incomes have hit a new USD all-time high of $52.3M per day.
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Source: https://coinpedia.org/bitcoin/traders-responding-towards-bitcoin-rally/
