Mid-To-Long Term Holders Responsible For November Correction

According to data, most Bitcoin owners who are mid-to long-term holders sold their Bitcoin during November. This is responsible for the correction.

The Bitcoin UTXO Age shows that mid-term holders sold their coins in November

As per the latest weekly report from Arcane Research, mid-term holders seem to be behind the decline in BTC’s price during the month of November.

The relevant on-chain indicator here is the “UTXO Age.” UTXO stands for Unspent Transaction Output; you can think of it as a Bitcoin mechanic that keeps track of coins on the chain.

The UTXO-age metric is a measure of how long ago a BTC coin was last traded. Based on the amount of time each coin hasn’t been moved for, the corresponding holders can be categorized into short-term holder (STH), mid-term holder (MTH), and long-term holder (LTH).

Arcane Research considers UTXO ages shorter than 3 months to be STH and longer than 1 year LTH. Holders that fall within this period are known as MTH.

This chart shows the movement of the Bitcoin supply during November.

Bitcoin UTXO Age Bands

It looks like there is a reduction in the supply of mid-term supplies over the course the month. Source: The Arcane Research Weekly update - Week 47| Source: The Arcane Research Weekly Update - Week 47

You can see that Bitcoin’s short-term supply went through significant growth in this period. It increased from 14.9% to 17.2% by the end of the month.

Read More: Canada launches first Bitcoin ETFs| Canada Marks Launch Of First Bitcoin, Ethereum ETFs With Monthly Payouts

This suggests that holders of coins older than 50 years may have sold their coins. From the chart, it’s visible that the MTH supply had a sizeable drop during the month.

This is because most of Bitcoin STH’s increase can be explained by mid-term sellers.

The one-to three year supply also saw an increase. It means that a portion of the MTH supplies matured and moved into the longer age bracket.

Similar Reading: “The United States is Already Mining Bitcoin” Compass Mining CEO says “Maybe.”| “The United States Is Already Mining” Bitcoin… “Maybe,” Says Compass Mining CEO

There was also a decrease in the supply for the next 3-5 years in November. It is possible that these long-term investors reaped their gains and added to STH’s increase.

This suggests that November’s correction may have come from selling from mostly short-term investors with some longer-term ones.

BTC Prices

At the time of writing, Bitcoin’s price floats around $55.5k, up 2% in the last seven days. In the past month, crypto lost 11% value.

Below chart displays the five-day trend of Bitcoin’s prices.

Bitcoin Price Chart

BTC has been moving sideways over the past few days. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and Arcane Research charts

Get more Crypto News at CFX Magazine