Bitcoin speculators have initiated mass profit-taking as BTC price gains take the market to three-month highs.
Data from onchain analytics platform Glassnode shows Bitcoin (BTC) short-term holders (STHs) cashing in on the price surge above $65,000.
Bitcoin short-term holders eye profit protection
Bitcoin investors who are relatively new to the market — entities hodling a given amount of BTC for 155 days or less — are busy sealing in profits at current levels.
Glassnode shows that on Oct. 14, the amount of BTC sent by STH wallets to the largest global exchange, Binance, was the biggest since BTC/USD set all-time highs of $73,800 in March.
In total, Binance saw STH inflows of 7,127 BTC (about $480 million).
Bitcoin STH transfer volume to Binance. Source: Glassnode
Taking all major exchanges tracked by Glassnode into account, the daily tallies this week are among the highest since early June.
Bitcoin STH transfer volume to all exchanges. Source: Glassnode
Analyzing STHs’ financial buoyancy, the firm highlighted the healthy profit margins currently instilling a sense of accomplishment after months of sideways price performance.
“Short-Term Holders currently show a profit dominance with their Profit/Loss Ratio trading at 1.2,” it said in a post on X.
“This metric has recently broken 1 standard deviation above its 90-day mean, signaling a potential positive shift in investor sentiment.”
Bitcoin STH profit/loss ratio data. Source: Glassnode/X
BTC price research sees “heightened volatility”
As Cointelegraph reported, Bitcoin investor sentiment remains fickle this month. Relatively modest volatility has resulted in dramatic shifts in market exposure.
Related: Different this time? Bitcoin RSI says $233K BTC price possible in 2025
Meanwhile, the largest class of Bitcoin whales has amassed 1.5 million BTC in recent months.
Continuing, Glassnode noted that while demand for BTC has broadly declined since March’s highs, so too has supply availability.
“A notable divergence between supply and demand forces continues to grow,” it concluded in the latest edition of its weekly newsletter, “The Week Onchain,” released on Oct. 15.
“The demand side of the market has declined markedly since the March ATH, while several measures of the ‘active supply’ continue to compress and constrict. With respect to historical precedence, prior examples of acute tightness across the Bitcoin supply side have been a precursor for a regime of heightened volatility.”
Bitcoin STH relative unrealized loss 14-day moving average (screenshot). Source: Glassnode
Among the accompanying charts was confirmation of STHs’ low unrealized losses.
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