Bitcoin Hits Biggest Discount to All-Time High Since U.S. Election
Bitcoin (BTC) is currently trading 13% below its peak of approximately $108,000, marking the largest discount since the 2016 U.S. presidential election. Over the past several months, Bitcoin has consistently hovered around 10% below its record price, a range that many investors label as a correction.
The primary source of selling pressure comes from long-term holders (LTHs), who are defined by Glassnode as those holding Bitcoin for at least 155 days. LTHs typically sell when prices rise after accumulating Bitcoin during market lows.
CoinDesk research has shown that LTHs were already offloading a significant amount of BTC about a week ago. Since then, their selling has intensified, reducing their holdings from 14.2 million BTC in mid-September to 13.2 million BTC. On Thursday, LTHs sold nearly 70,000 BTC, marking the fourth-largest one-day sell-off of the year, according to Glassnode data.
However, short-term holders (STHs) have been picking up the slack, accumulating roughly 1.3 million BTC during this time. This indicates that STHs have been purchasing Bitcoin from LTHs and other sellers.
The dynamic has recently shifted, with LTHs looking to sell more Bitcoin than STHs are willing to buy, contributing to the price decline to around $94,500.
At present, there are 19.8 million Bitcoin in circulation, with an additional 2.8 million BTC on exchanges. The amount of Bitcoin held on exchanges has been gradually decreasing, with approximately 200,000 BTC leaving exchanges in recent months.
Watching the activity of LTHs, STHs, and Bitcoin’s circulating supply will be crucial in forecasting price movements in the coming days.
