{"id":387563,"date":"2024-01-09T15:45:08","date_gmt":"2024-01-09T15:45:08","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=387563"},"modified":"2024-01-09T15:25:20","modified_gmt":"2024-01-09T15:25:20","slug":"exchange-flows-show-sths-preparing-for-volatility-while-lths-hodl","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/exchange-flows-show-sths-preparing-for-volatility-while-lths-hodl\/","title":{"rendered":"Exchange flows show short term buyers preparing for volatility while long term hodl"},"content":{"rendered":"<p class=\"p1\">As the crypto market holds its breath for the U.S. Securities and Exchange Commission's (SEC) <a href=\"https:\/\/cryptoslate.com\/sec-lists-eight-updated-19b-4-filings-as-spot-bitcoin-etf-process-nears-deadline\/\"><span class=\"s1\">impending decision<\/span><\/a> on the first spot Bitcoin Exchange-Traded Fund (ETF), a close analysis of Bitcoin's\u00a0on-chain data reveals a market in a state of <a href=\"https:\/\/cryptoslate.com\/investors-hedge-bets-on-bitcoin-with-50k-call-options-before-etf-decision\/\"><span class=\"s1\">cautious anticipation<\/span><\/a>.<\/p>\n<p class=\"p1\">Between Jan. 4 and Jan. 8, 2024, Bitcoin's price increased from $44,230 to <a href=\"https:\/\/cryptoslate.com\/btc-tops-47k-as-cnbc-predicts-wednesday-bitcoin-etf-approval\/\"><span class=\"s1\">$46,944<\/span><\/a> after weeks of sideways and choppy movement. This increase, marked by a peak on Jan. 8, indicates an optimistic but pent-up market. Such price behavior could be attributed to speculative positioning in response to the upcoming SEC decision, as the market seems to be leaning towards a positive outcome.<\/p>\n<p class=\"p1\">The 30-day change in Bitcoin supply held in exchange wallets shows that most of the market isn't looking to sell. Starting at 2,571 BTC on Jan. 4, the balance shifted to a negative 15,183 BTC by Jan. 8. This consistent decrease in exchange-held Bitcoin suggests a growing preference among holders to withdraw their assets. This behavior often indicates a preparation for long-term holding, possibly in anticipation of a post-ETF approval surge in Bitcoin's value.<\/p>\n<figure id=\"attachment_387593\" aria-describedby=\"caption-attachment-387593\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-387593\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024.png\" alt=\"bitcoin exchange net position change 2024\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/bitcoin-exchange-net-position-change-2024-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-387593\" class=\"wp-caption-text\">Graph showing the 30-day change in Bitcoin supply held in exchange wallets from Jan. 1 to Jan. 8, 2024 (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=BTC&category=Exchanges&m=distribution.ExchangeNetPositionChange&s=1704063600&u=1704754799&zoom=\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p1\">The total amount of BTC transferred to and from exchange addresses between Jan. 4 and Jan. 8 indicates consolidation. The high volume observed on Jan. 4 (52,116 BTC to exchanges and 51,432 BTC from exchanges) tapered off mid-week, only to spike again on Jan. 8 (53,196 BTC to exchanges and 52,798 BTC from exchanges). Such a pattern is characteristic of investors repositioning their portfolios in anticipation of significant market movements.<\/p>\n<figure id=\"attachment_387594\" aria-describedby=\"caption-attachment-387594\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-387594\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024.png\" alt=\"net transfer volume bitcoin exchanges 2024\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/net-transfer-volume-bitcoin-exchanges-2024-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-387594\" class=\"wp-caption-text\">Graph showing the difference in BTC volume flowing into and out of exchanges from Jan. 1 to Jan. 8, 2024 (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=BTC&category=Volume&m=transactions.TransfersVolumeExchangesNet&s=1704063600&u=1704754799&zoom=\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p1\">The movement of coins by short-term (STH) and long-term holders (LTH) shows where the selling pressure could come from. On Jan. 8, 74.82% of all coins moved to exchanges came from short-term holders, likely capitalizing on the recent price increase to realize gains. This behavior suggests a preparatory stance for expected short-term volatility or a price correction post-ETF decision. In stark contrast, long-term holders in profit made up only 4.73% of the total exchange inflows. This indicates long-term holders' belief in the cryptocurrency's resilience irrespective of short-term regulatory outcomes.<\/p>\n<figure id=\"attachment_387597\" aria-describedby=\"caption-attachment-387597\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-387597\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024.png\" alt=\"lth sth profit loss to exchanges 2024\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/01\/lth-sth-profit-loss-to-exchanges-2024-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-387597\" class=\"wp-caption-text\">Graph showing the relative amount of BTC moved by long and short-term holders in profit and loss to exchange addresses from Jan. 1 to Jan. 8, 2024 (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=BTC&category=Volume&m=transactions.TransfersVolumeLthSthToExchangesProfitLossRelative&s=1704063600&u=1704754799&zoom=\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p1\">The decreasing Bitcoin balances on exchanges and the trading behaviors of short-term and long-term holders reflect a market at a crossroads. While the general sentiment leans towards a bullish outlook, the readiness for potential short-term fluctuations is evident.<\/p>\n<p class=\"p1\">If the <a href=\"https:\/\/cryptoslate.com\/market-reports\/whats-are-etfs-and-why-do-they-matter\/\"><span class=\"s1\">ETF<\/span><\/a> is approved and Bitcoin's price increases, the already decreasing supply of Bitcoin on exchanges could lead to a supply squeeze. This scarcity, coupled with heightened demand, has the potential to drive prices even higher.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the crypto market holds its breath for the U.S. Securities and Exchange Commission&#8217;s (SEC) impending decision on the first spot Bitcoin Exchange-Traded Fund (ETF), a close analysis of Bitcoin&#8217;s\u00a0on-chain data reveals a market in a state of cautious anticipation. Between Jan. 4 and Jan. 8, 2024, Bitcoin&#8217;s price increased from $44,230 to $46,944 after [&hellip;]<\/p>\n","protected":false},"author":759,"featured_media":387578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77921],"tags":[78748,78410,75416],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Exchange flows show short term buyers preparing for volatility while long term hodl<\/title>\n<meta name=\"description\" content=\"Bitcoin on-chain data shows market poised for SEC&#039;s ETF decision with decreased exchange balances and strategic holder movements.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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