Share this article
Crypto Markets Analysis: Bitcoin’s Surge Moves Both Short- and Long-Term Holders Into Profitability
But the question remains whether short-term holders will sell or stay and become long-term holders.
Updated Jan 23, 2023, 8:25 p.m. Published Jan 23, 2023, 8:25 p.m.
The price of bitcoin has surged in recent weeks, helping both short- and long-term investors to profit, on-chain data shows.
According to analytics firm Glassnode, as of time of writing the percentage of short-term profiting BTC holders increased to 97.5%, its highest level since November. Bitcoin has also been profitable for long-term BTC holders, according to Glassnode.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"Long-term" is considered over 155 days while "short-term" is less than 155 days.
The Long Term Holder MVRV (market value to realized valued) ratio has risen above 1.0 for the first time in six months, indicating that the cost basis for long-term holders is now below the spot price of bitcoin.
Clearly, investors getting long (buying and owning an asset expected to appreciate over time) on BTC at a lower cost basis following a prolonged decline in BTC's price is driving this trend. But with over 97.5% of short-term supply now in profit, will newer BTC investors cash in on the move higher or maintain their positions, ultimately becoming long-term holders themselves? And what is the significance of either move?
Evidence from January 2018, April 2021 and November 2021 indicates that an increase in short-term supply in profit above 97.5% preceded sharp downturns in price. Are markets now headed in that direction?
Investors may also wish to scrutinize the stablecoin supply ratio (SSR) and the amount of bitcoin being sent to exchanges, among other indicators.
The SSR declines as investors send more stablecoins to exchanges relative to BTC. This trend indicates more capital being sent to exchanges for the purposes of acquiring more bitcoin. A similar metric to remember is the exchange reserve balance of stablecoins, because an increase indicates increased buying pressure.
The SSR has increased slightly since Jan. 9, while the exchange balance for stablecoins has declined, which may be concerning to investors.
The opposite holds true for the bitcoin exchange reserve balance. Bullish investors would not want to see bitcoin exchange balances rise because such an increase would suggest more investors are sending BTC to exchanges for the purpose of selling.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out
ZEC zoomed 12% amid the fee discussion, beating gains across all major tokens.
What to know:
- A new proposal by Shielded Labs suggests a dynamic fee market for Zcash to address rising transaction costs and network congestion.
- The proposed system uses a median fee per action observed over the prior 50 blocks, with a priority lane for high-demand periods.
- The changes aim to maintain Zcash's privacy features while avoiding complex protocol redesigns.
Top Stories
