The following is from the recent issue of Deep Dive, Bitcoin Magazine’s premium market newsletter. To be among the first to get these insights and other online bitcoin market analysis direct to your inbox, follow now.
We’ve covered the long-term (LTH) and short-term (STH) holders of bitcoin’s cost basis multiple times in our previous analysis.
For an introduction to the indicator, read The Daily Dive # 070 – Short Term: Long Term Cost Base Ratio.
When STH:LTH strike ratio is increasing, it means that STH’s base price is increasing relative to LTH and vice versa, when STH:LTH strike ratio is decreasing, LTH’s base price is increasing against the cost basis. of STHs.
This is extremely insightful, as the price of bitcoin rises as marginal sellers dry up. This is why you see the cost base of LTHs stagnating a bit during explosive bull markets, while the cost base of STH (many of whom are new entrants) explodes. explode or more – simply don’t have enough money to meet the new found demand. Thus, “the number increases.”
Looking at the recent index, with the price recently breaking below the cost base of short-term holders, their cost base is decreasing and so the index is barely rising.
This is happening as a number of recent market participants are investing and suffering losses in the chain. The downtrend will resume once the price has regained the cost base of short-term holders, ($52,495) or the aging of the coins among the long-term holders causes the respective cost base of they increase against the base of short-term holders.
The trend towards the secularization of global bitcoin adoption will continue. Despite various macroeconomic uncertainties approaching 2021, there is never a bad time to increase your share of the world’s healthiest monetary system. Consolidation to end 2021 is the most likely scenario.
Sat stackers excited.
https://bitcoinmagazine.com/markets/bitcoin-long-term-holder-short-term-holder-cost-basis-ratio Bitcoin Long Term Holder Basic Cost Base Ratio