Bitcoin (BTC) speculators have begun taking massive profit-taking as the rise in BTC prices has pushed the market to its highest in three months.
Short-term Bitcoin holders (STH) are cashing in as BTC price surges above $65,000, data from on-chain analytics platform Glassnode shows.
Protecting Bitcoin short-term holders’ profits
Relatively new to the market, Bitcoin investors (those holding a certain amount of BTC for 155 days or less) are busy locking in profits from current levels.
According to Glassnode, the amount of BTC sent from STH wallets to Binance, the largest global exchange, on October 14 became the largest since BTC/USD hit an all-time high 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 into account all major exchanges that Glassnode tracks, this week’s daily tally is one of the highest since early June.
Bitcoin STH transfer volume to all exchanges. Source: Glassnode
Analyzing STH’s financial buoyancy, the company highlighted healthy profit margins that are instilling a sense of accomplishment after months of price-performance.
“Short holders have a profit advantage, currently trading at a profit/loss ratio of 1.2,” he commented in a post about X.
“This indicator has recently moved above 1 standard deviation above its 90-day average, indicating a potential positive shift in investor sentiment.”
Bitcoin STH Profit/Loss Ratio Data. Source: Glassnode/X
BTC Price Survey Shows “Increasing Volatility”
As Cointelegraph reported, Bitcoin investor sentiment remains volatile this month. Relatively mild volatility has led to dramatic changes in market exposure.
relevant: Is it different this time? Bitcoin RSI says a BTC price of $233,000 is possible in 2025.
Meanwhile, the largest Bitcoin whale has amassed 1.5 million BTC in recent months.
Glassnode went on to note that while demand for BTC has decreased overall since its March peak, supply availability has also decreased.
“The striking gap between supply and demand continues to grow,” concludes the latest edition of the weekly newsletter “The Week Onchain,” published on October 15.
“The demand side of the market has declined noticeably since the March ATH and several measures of ‘active supply’ continue to compress and contract. “With respect to historical precedent, previous instances of extreme tightening on the Bitcoin supply side have been precursors to a regime of heightened volatility.”
Bitcoin STH relative unrealized losses 14-day moving average (screenshot). Source: Glassnode
Among the attached charts, we see low unrealized losses for STH.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.