Examining Short-Term Bitcoin Holder Behavior

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Relevant Articles:

The Daily Dive #070 – Short-Term:Long-Term Cost Basis Ratio

The Daily Dive #083 – Bitcoin All Time High

The Daily Dive #081 – HODLer Engineered Supply Squeeze

In previous Daily Dives we examined the supply dynamics of long-term and short-term holders and what it means for the bitcoin market. Today, we will further examine the dynamics of short-term holders during bull markets and bear markets.

Before we begin, it is important to define some terminology for those who may not be familiar.

In this piece, when referring to cost basis, we are referring to the realized price, which uses the price at which the coins were last transferred on the Bitcoin blockchain. Due to the transparent nature of Bitcoin’s ledger, we can quantify a cost basis of various cohorts of holders. Below are a few other terms and abbreviations that will be mentioned frequently in today’s Daily Dive.