Early US ETF investors now recognized as long-term holders

full version at cryptoslate

Quick Take

Short-term holders (STHs) are investors who have acquired Bitcoin within the last 155 days, while long-term holders (LTHs) are those who have held Bitcoin for longer.

Notably, the launch of the Bitcoin ETF in the US on Jan. 11, approximately 172 days ago, means that investors who bought Bitcoin at that time are now classified as LTHs.

The average cost basis for this group of LTHs is $58,049. With Bitcoin trading above $62,000, these investors are seeing a return of about 7%. STHs are known for their sensitivity to short-term price fluctuations, whereas LTHs tend to be less reactive to market volatility over time.

Bitcoin: Exchange Average Withdrawal Price (by year): (Source: Glassnode)

Interestingly, Bitcoin experienced a 20% correction starting on June 7, during which the cost basis for these LTHs was $57,600. Despite the correction, these investors have continued to buy, indicating a strategy of purchasing the dip.

Similarly, when Bitcoin dropped to $56,500 on May 1, the average cost basis was $56,300, suggesting that these LTHs provided support during that drawdown as well. This behavior highlights the resilience and strategic buying patterns of LTHs during market corrections.