Bitcoin is currently held by way more long-term holders than short-term. In other words, all the tourists have left and only us convicted people remain.

One of the big reasons that a bear market even forms is the bull market itself. In the bull market a lot of newbies, enter the markets in the hope for some quick money as they probably saw how the news is flipping out over Crypto. But those people mostly just have a very short-term perspective as they are just here for the money and will leave as soon as they think there is no money left.

Such people can be summed up as under 1 year holders on on-chain data. They exit as they probably even lost a lot of money, is the cause for all the dumping, basically they paper-hand as they don’t understand the fundamental reason of Crypto anyway or never wanted to understand it. THIS is how a bear market is made.

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From “Documenting Bitcoin“ and slightly edited myself

As we can see from this chart with the >1 year holder, which are the long-term holders and the <1 year holders, which are the short-term holders we have talked about above. Right now those long-term holders, which consist of many people here, are holding 12M BTC out of the total supply of 19M. While short-term holders have decreased to nearly 6M which is down a lot from their peak of 10M in 2018.

While it is also very interesting that while long-term holders keep making new peaks, short-term holders have not since 2018. Even during the peak-hype of this bull market we had approx. 10M longterm and under 9M shortterm holders. Which may also be a reason why we did not completely blow off like in 2018. We simply did not have as many speculators as back then, which sounds crazy but is relatively true.

As some closing words, this on-chain data is very interesting and will be even more interesting during the next bull run. More long-term holders is good for Crypto, well for the long-term, as those are people that will likely never sell and we could see that, if we compare this years crashes from LUNA to FTX, during FTX the impact was a lot less on the market as mostly only long-term perspective people remained.