Bitcoin’s market dominance has reached 56% as long-term holders continue to accumulate despite turbulent market conditions, according to a comprehensive report by Glassnode. The latest onchain report highlights a divergence in investor behavior, with short-term holders bearing the brunt of recent losses.
Bitcoin Investors Face Diverging Fortunes as Long-Term Holders Stay Steady, Glassnode Reveals
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Long-Term Bitcoin Holders Show Resilience, Averaging $138M in Daily Profits, Says Glassnode
Glassnode‘s latest onchain analysis reveals that bitcoin’s ( BTC) dominance in the cryptocurrency market has surged from 38% in November 2022 to a current level of 56%. This increase is attributed to the steady accumulation by long-term holders, who remain unfazed by the volatile price movements. The report notes that this group has consistently locked in profits, with an average of $138 million in daily sell-side pressure being absorbed, maintaining market equilibrium.
The Glassnode report states:
Amidst tumultuous market conditions as of late, Long-Term Holders have been locking in a reasonably consistent $138M in profit per day. With each transaction, a buyer and a seller are matched, with supply and demand imbalances resolved via price changes.
In contrast, ethereum‘s dominance has seen a slight decline, while stablecoins and altcoins have experienced more significant decreases. The report, authored by Glassnode researchers Ukuria OC and Cryptovizart, also examines the psychological impact on short-term holders. These investors have increasingly locked in losses, indicating a potential overreaction to the market’s recent downturn.
The analysis suggests that sustained unrealized losses among short-term holders could heighten the risk of panic selling, potentially leading to a more severe bearish trend. Despite these challenges, the overall market sentiment remains mixed, with the continued “HODLing” behavior among long-term holders providing a counterbalance to the negative pressures observed among newer investors.
What do you think about Glassnode’s latest onchain analysis? Share your thoughts and opinions about this subject in the comments section below.
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