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Emotional trading patterns hit short-term Bitcoin holders’ wallets Emotional trading patterns hit short-term Bitcoin holders’ wallets

Emotional trading patterns hit short-term Bitcoin holders’ wallets

Data via Glassnode

Short-term holders exhibit fear and greed, transferring over $5.2 billion in Bitcoin at a loss over two days amid price declines.

Quick Take

As Bitcoin’s price has surged roughly 50% since the beginning of 2024, data from Glassnode reveals a noteworthy pattern in behavior among short-term holders (STHs), defined as investors holding Bitcoin for less than 155 days, who tend to exhibit a pattern of fear and greedโ€”buying high and selling low.

Glassnode data shows that during the past two days of April, as Bitcoin experienced a 2.4% dip on Apr. 1, followed by a 6% decline on Apr. 2, a substantial $5.2 billion, equivalent to roughly 76k Bitcoin was sent to exchanges at a loss by STHs.

Short-Term Holders in Loss to Exchanges: (Source: Glassnode)
Short-Term Holders in Loss to Exchanges: (Source: Glassnode)

In contrast, only around $570 million in profits was sent to exchanges by this group on Apr. 2โ€”a figure that represents one of the lowest levels observed this year.

This pattern reflects the emotional behavior commonly observed among STHs. While significant profit-taking was evident when Bitcoin reached new all-time highs last month, the recent sell-offs at losses indicate the fear and capitulation that frequently affect short-term speculators during market downturns.

Short-Term Holders in Profit to Exchanges: (Source: Glassnode)
Short-Term Holders in Profit to Exchanges: (Source: Glassnode)