Bitcoin is Currently at Its Largest Discount to Record High Since U.S. Election
Bitcoin (BTC) is trading 13% below its all-time high of roughly $108,000, marking its biggest discount since the U.S. presidential election in early November. Since then, the leading cryptocurrency has repeatedly dropped by about 10% from its peak, a level often referred to as a correction by some investors.
The primary selling pressure is coming from long-term holders (LTHs), defined by Glassnode as individuals who have held Bitcoin for at least 155 days. These holders typically sell when prices rise after accumulating Bitcoin during market downturns.
A week ago, LTHs were already significantly reducing their holdings, as CoinDesk research showed. Since then, their selling activity has increased, with their total holdings dropping from approximately 14.2 million BTC in mid-September to about 13.2 million BTC. On Thursday, LTHs offloaded nearly 70,000 BTC, the fourth-largest single-day sell-off of the year, according to Glassnode data.
However, for every seller, there is a buyer, and in this case, short-term holders (STHs) have been the main buyers. STHs have accumulated roughly 1.3 million BTC during this time, indicating they have purchased Bitcoin from LTHs and more.
In recent days, the trend has shifted as LTHs seem more inclined to sell, while short-term traders are less eager to buy. This imbalance has contributed to Bitcoin’s price decline to around $94,500.
Currently, there are 19.8 million Bitcoin in circulation, with an additional 2.8 million BTC held on exchanges. However, the amount of Bitcoin on exchanges continues to decline, with approximately 200,000 BTC leaving exchanges in recent months.
These dynamics between LTHs, STHs, and Bitcoin’s circulating supply are crucial factors to monitor in the coming days to understand potential price movements.
