Most of the BTC sent to exchanges is in losses, after prevailing in gains this year.
The few BTC in earnings that are being sent to exchanges are from long-term investors.
Currently most of the bitcoins (BTC) that are being sent to cryptocurrency exchanges, for sale or for another reason, are at a loss. This means that they are trading at a lower price than they were purchased for.
It is possible to see this through the following explorer graphic glassnodewhich measures the difference in the volume of entries in exchanges of bitcoins in profit and loss. When its result is positive, it indicates that the majority are in profit, so they will obtain a return if they are sold, as was the case mostly in 2023.
Conversely, when the result of this metric is negative, as is currently the case (-0.7), it means that most bitcoins sent to exchanges are in losses. This comes at a time when the cryptocurrency depreciated for a few minutes below $26,000 today.
If you break down who are these bitcoins that are being sent to exchanges, you can identify that most of it belongs to short-term investors. According to the explorer, this means that these actors, also known by their English term short-term holders (STH), have held those coins for less than 155 days.
Regarding the bitcoins sent to exchanges by long-term investors, also known as long-term holders (LTH), an opposite scenario is seen. Most of these, which were stored for more than 155 days, are in profit.
As reported by CriptoNoticias, this scenario occurs while bitcoin inflows to exchanges dropped to their lowest in over 2 years. With such a situation involving less liquidity for the market, Glassnode noted that more price volatility could be unleashed.
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