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Bitcoin HODLers Are Finally Starting To Take Profit: Glassnode

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Bitcoin (BTC)’s meteoric rise over the past few months has many long-term holders starting to cash out their positions, on-chain data suggests.

In a research newsletter published on Tuesday, Glassnode noted that long-term investors have already distributed 480,000 BTC since December 2023, from which time BTC has appreciated 45%.

Bitcoin’s Distribution Phase

According to lead Glassnode analyst James Check, roughly half of the old coins to started changing in the last three months came from the Grayscale Bitcoin Trust.

As the largest Bitcoin fund in the world, Grayscale has suffered nothing but outflows since converting into a Bitcoin spot ETF on January 11, dumping 202,873 BTC on the market.

Overall, long-term holders are distributing coins at a rate of 257,000 BTC per month. By comparison, HODLers sold BTC at a rate of 319,000 BTC per month and 836,000 BTC per month during major market expansions in mid-2019 and early 2021, respectively.

“Like clockwork, long-term #Bitcoin holders have started their ATH distribution,” wrote Check in a post to X on Monday. “it goes to show that there are HODLers who can and do read the market very well.”

By Glassnode’s terms, a HODLer is anyone who’s held BTC in one wallet for over 155 days. On-chain data shows that the average cost basis for this cohort’s holdings is $20,700. In other words, at BTC’s current price of $64,700, they’re sitting on a ~225% profit.

In its Tuesday report, Glassnode explained:

“Based on the current value, these investors are approaching their Euphoria state with an elevated incentive to spend and take profits. Historically, this cohort ramps up their spending as new market ATHs are reached, with distribution accelerating until they help form the cycle macro top.”

Bitcoin’s Early All-Time High

Bitcoin briefly tapped a new all-time high on Tuesday at $69,200, before quickly descending back to $64,000 amid over $700 million in crypto market liquidations.

Despite the pullback, Glassnode said that BTC new demand may be enough to offset sell pressure from old investors for many months to come, based on historical trends.

Specifically, the average long-term holder has been net-selling BTC over the previous 8 to 15-day period for the past 42 days, while prior bull markets sustained such sell pressure for between 123 and 225 days.

“It may suggest that demand inflows could offset LTH spending for several months ahead, should history be any guide,” wrote Glassnode.

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Solana Whales Dump SOL Amid Major Token Unlock 

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“Many whales unstaked and dumped SOL today,” reported blockchain analytics platform Lookonchain on April 4.

It highlighted four transactions of over $3 million worth of the Solana native token, the largest of which was a whopping 258,646 SOL worth around $30 million.

The Solana selloff has been a result of the meme coin bubble bursting as the asset has dumped by 60% in just over two months.

Major Solana Unlock

There was also around $200 million worth of Solana being unlocked on April 4, which is adding to the selling pressure. Arkham Intelligence said it “marks the largest single-day unlock of staked SOL until 2028.”

CoinNess Global reported that 425,266 SOL, valued at $50 million, was unlocked, and 284,147 SOL, worth $33 million, had been transferred to the exchanges Binance, Kraken, and Coinbase.

Solana token unlocks refer to events when previously locked SOL becomes available for trading, often due to vesting schedules or liquidation processes. The most recent significant unlock occurred in March when 11.2 million tokens worth $1.3 billion were released from the FTX bankruptcy estate.

Token unlocks are generally bearish in the short term because they increase the circulating supply, which is currently 514 million for Solana.

Fintech firm Ripple also unlocked $1 billion worth of its XRP token this week, adding to selling pressure as the asset dipped below $2 on April 3.

Other recent major token unlocks include Sui, and its price has tanked almost 10% today.

SOL Price Tanks

SOL prices have declined by over 4% on the day, which is a larger loss than the wider market. The asset fell to $112 in an intraday low before recovering to trade around $118 at the time of writing.

SOL has tanked by more than 16% over the past week, while the wider crypto market has only declined by 6.5%. This suggests that SOL is being dumped at a much faster rate than Bitcoin and other altcoins.

The Solana blockchain is primarily used for memecoin minting and trading, and now that this bubble has burst, activity and network revenue for the ecosystem have slumped. This has resulted in SOL prices crashing to their lowest levels in over a year.

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Good News for Ripple Investors: Is XRP Preparing for a Rebound?

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TL;DR

  • Ripple’s ability to defend from a price drop below the critical support at $2 could be a proper entry signal.
  • The narrative is also supported by a popular technical indicator, which just flashed a buy signal.

The past week didn’t go well for the fourth-largest cryptocurrency, which is down by over 6% within this timeframe. Thursday evening was a particularly painful trading period for the asset as Trump’s latest tariffs pushed it south to a three-week low of $1.96.

This meant that XRP had lost roughly 25% of its value since March 19, when it peaked at $2.6 after the announcement by Ripple’s CEO, Brad Garlinghouse, that the lawsuit against the US SEC had effectively ended.

Nevertheless, the cross-border token reacted well to the brief slip below the key support line at $2 and bounced off above it almost immediately. The past 12 hours or so have been more promising as XRP now trades at $2.1.

Renowned crypto analyst Ali Martinez highlighted the importance of the $2 support numerous times in the past, warning that XRP could slump to $1.2 if it breaks to the downside. Now that it managed to defend the asset, it could be the propeller of another rally.

Martinez substantiated his position by mentioning the TD Sequential – a metric that shows the market exhaustion in either direction. According to the analyst, the technical indicator had flashed a buy signal on the daily after XRP held above $2, which could trigger a trend reversal and lead to upcoming gains.

This prediction is in stark contrast to the concerning developments around ADA and LINK, where whales had started to offload substantial portions of both assets.

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Disturbing News for Cardano (ADA) and Chainlink (LINK) Investors: Details

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TL;DR

  • Chainlink and Cardano whales have begun offloading substantial portions of their assets in the past few weeks.
  • Although both altcoins are slightly in the green on a daily scale, their weekly and monthly performances are quite concerning.

Large market participants, known as whales, are a crucial part of the cryptocurrency industry as they can bend prices depending on their behavior – big purchases typically lead to upcoming gains, and vice versa.

In the case of LINK and ADA, these investors were stacking up big time after the US elections in early November and ahead of Trump’s inauguration in mid-January. Their consecutive purchases managed to push LINK above $30 for the first time in over three years, while ADA’s peak during this cycle came at over $1.3.

However, both of those multi-year records came in December. Since then, the two cryptocurrencies, as well as most of the market, have been in a state of a freefall. ADA is down by roughly 50% and sits at $0.66 now, while LINK has slumped by 57% to $13.

These declines could be linked again to whales and their change in attitude. In the case of LINK, they have offloaded more than 170 million tokens in less than a month, which have a whopping USD value of $2.2 billion, according to today’s prices.

According to Ali Martinez, a popular analyst with over 130,000 followers, LINK has now broken a ‘crucial trendline’ that held its price for nearly two years.

The landscape around Cardano is not that much brighter. After the March sell-off, ADA whales kept disposing of their assets by selling another 120 million tokens (valued at $80 million) in just two days at the start of April.

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