New BTC investors are panicking as they lock in profits and losses while long-term investors remain calm.
Fresh on-chain data reveals the dynamics of the cost of Bitcoin (BTC) ownership depending on the holding period. Research by an expert nicknamed Wenry found that short-term holders have been increasingly active in recent weeks, putting pressure on the market. Specifically, those who bought Bitcoin over the past month at an average price of $113,477 began gradually locking in profits starting on October 10, coinciding with a local correction after the price rose to $120,000.
Key price ranges demonstrate a clear division between active speculators and long-term investors. “Traders holding the coin for 1 to 3 months have a net worth of approximately $114,291, while those holding it for 3 to 6 months have a net worth of $110,911, making these groups the most sensitive to short-term fluctuations,” the expert noted. He emphasized that despite some profit-taking, the market behavior remains moderately bullish, and the majority of short-term capital has not yet completely exited the market.
Notably, the average cost of ownership for those holding the asset for 6 to 12 months is $93,561—a value analysts consider a key psychological threshold. If the Bitcoin price falls below this level, selling pressure could spread to medium-term investors, leading to a potential reassessment of market expectations.
Long-term holders, however, demonstrate resilience. Coin holders with a holding period of one year or more remain confidently profitable: those with a holding period of 12-18 months purchased their coins for an average of $63,234, those with a holding period of two to three years purchased their coins for $24,146, and for assets over five years old, the cost does not exceed $8,000. These data confirm that the bulk of long-term capital is unaffected by short-term fluctuations and provides fundamental support for the market. The researchers also emphasized that the greatest panic occurs among new participants entering the market closer to historical highs. For them, every correction is perceived as a threat to capital, which increases short-term volatility.
Source: cryptonews.net
