Bitcoin Rise Benefited Short-Term Investors: But One Group is at Great Risk!
On-chain analysis platform Glassnode shared an updated report on the cryptocurrency market.
According to the weekly on-chain analysis by Glassnode, there was a strong recovery in Bitcoin prices and 75% of short-term investors made a profit.
In addition, the report also discussed the impact of continuous futures markets on Bitcoin price movements.
Continuous futures markets are monitored through leverage and open position models that are sensitive to price movements. Exchanges such as Binance, Bybit, and OKX accounted for 84% of the total open positions.
Significant declines were seen when leveraged long positions were liquidated during market fluctuations. The price increase provided a positive profit environment for short-term investors:
Bitcoin price staged a strong recovery, rising above $68,000 and catalyzing a sustained rise in futures trading. The appreciation in price also provided much-needed relief to the short-term investors group; 75% of its coins are now held in profit.
Short-term investor behavior came to the fore
Bitcoin's recent price increase has had significant impacts on short-term investors' spending behavior, profit/loss balance, and changes in stock market reserves.
Changes in short-term investors' stock market reserves revealed their tendency to hold or sell Bitcoin.
The dominance of major exchanges in open positions and the liquidation of leveraged positions have contributed to the volatility of Bitcoin prices. While the price increase in recent weeks has benefited short-term investors, it has put investors holding short-term transactions at great risk.