Bitcoin (BTC) is currently in a consolidation phase, and investor responses vary with the lack of positive momentum. The market research platform Glassnode has analyzed the behavior of various investor cohorts using the 'Bitcoin Supply by Investor Behaviour' metric.
How Are Bitcoin Investors Behaving?
Glassnode revealed that the BTC supply held by First Buyers has climbed by 1% over the last five days. This cohort of investors has bought at least 50,000 BTC, increasing their holdings from 4.88 million BTC to 4.93 million BTC, indicating that fresh demand for BTC is still entering the market.
Another cohort, Conviction Buyers, has grown their holdings by 10% from 933,000 BTC to 1.03 million BTC during the same period. While this group is active in buying, their participation is low compared to the surge recorded in April, suggesting hesitance due to the perceived shallow nature of the current BTC dip.
Short-term Holders Realize Losses
It is worth mentioning that a particular cohort of Bitcoin investors is selling their assets at a loss for the first time in seven months. The market analytics platform, CryptoQuant, revealed that short-term holders are offloading coins at a loss for the first time since January. This trend shift could indicate either weakening momentum or a healthy market reset.
Market Behavior Analysis
Some investors are selling at a loss, with the BTC supply of the Loss Sellers cohort rising by 37.8% from 63,000 BTC to 87,000 BTC in less than a week. Analysts assert that panic has lessened among investors as realized losses remain minimal compared to earlier this year. Additionally, supplies for Profit Takers have spiked by 5.4%, from 1.73 million to 1.83 million BTC over the past five days, reflecting the largest increase for this cohort year-to-date.
The state of the Bitcoin market continues to display a varied response from investors. While some groups are accumulating assets, others, particularly short-term holders, are starting to realize losses, which could signal upcoming changes in the market.
