Short-term holders (STH):
- Short-term holders are individuals who engage in buying and selling Bitcoin over a relatively brief period. These holders typically use trading strategies such as day trading, swing trading, or scalping to leverage market volatility.
Long-term holders (LTH):
- Long-term holders are skilled traders or entities that hold onto their Bitcoin for an extended period, long-term holders usually adopt a buy-and-hold investment strategy.
Observations :
-There has been a recent sharp decrease (from $19 billion to -$5 billion) in the LTH realized cap (blue), suggesting that long-term holders are likely taking profits or closing buying positions.
- Conversely, the STH realized cap (orange) has seen a recent sharp increase , moving from -$17 billion to $11 billion, indicating that short-term holders are likely taking on more risk or increasing their buying positions.
The Korea Premium Index :
(commonly known as the "Kimchi Premium") refers to the price difference between Bitcoin (or other cryptocurrencies) traded on South Korean exchanges versus global exchanges.
- Negative Premium: When the Korea Premium Index is negative ( near to zero or lower ), Bitcoin is trading at a lower price on Korean exchanges compared to global exchanges. It means that there is low buying pressure from Korean traders (FYI trading crypto in korea is a cluture phenomenon ).
Net Realized Profit and Loss (blue line):
Shows the total net profit or loss that has been realized in USD terms. Positive values indicate more profit-taking, while negative values represent losses being realized.
Observations :
- The red line across the chart represents a $4 billion realized profit level, which appears to align with several significant peaks in NRPL.
- These points where realized profit or loss crosses the $4B level might represent moments of high market activity, where many market participants are either taking significant profits.
Written by Amr Taha
