- According to Glassnode analysts, the cryptocurrency currently lacks sufficient momentum to encourage long-term holders to empty their wallets.
- In a new summary released by Glassnode on November 21, with the recent increase in Bitcoin’s price, it mentioned that 16.3 million BTC is currently in profit.
- While a group of short-term investors reduced their BTC holdings by 2.3 million BTC, causing a new all-time low, long-term investors seem reluctant to sell their assets.
According to on-chain analysts’ assessments, the Bitcoin price is not at a sufficient level to motivate BTC investors.
Bitcoin Price Not Enough to Motivate Investors
Although Bitcoin’s price is attempting to reach $40,000, according to Glassnode analysts, the cryptocurrency currently lacks sufficient momentum to encourage long-term holders to empty their wallets.
In a new summary released by Glassnode on November 21, with the recent increase in Bitcoin’s price, it mentioned that 16.3 million BTC is currently in profit (83.6% of the circulating supply). Analysts added that this figure resembles the peaks of the 2021 bull market.
While the market may seem greedy at current price levels, Glassnode stated that most investors still haven’t reached a statistically high level of unrealized profit based on cost, despite the “heating stages of the bull market.”
Glassnode stated, “This indicates a significant portion of the supply is in profit, with most cost bases only slightly below the current spot price.”
While a group of short-term investors caused a new all-time low by reducing their BTC holdings by 2.3 million BTC, long-term investors seem unwilling to sell their assets and are expecting higher unrealized profits, according to analysts. It appears that long-term investors may have to wait for favorable conditions for a few more months.
Bitcoin and S2F Model
As previously reported, investor and quantitative analyst PlanB, known for the Stock-to-Flow (S2F) model for BTC, believes there is a possibility that the cryptocurrency will remain in the range of $32,000 to $64,000 until the 2024 halving. According to PlanB, a real bull run will come after the halving or “earlier if ETF approval is obtained.”
