During the period when Bitcoin was traded close to the $100,000 level in November and December, the behavior of different investor groups attracted attention.
CryptoQuant’s “Spent Output Age Bands” (SOAB) indicator analyzes the holding periods over which Bitcoin sales occurred and reveals the investor groups that gained the most during this period.
Long-term investors realized their profits
According to the data, long-term investors (LTH) made significant profits during the November and December rally. The SOAB indicator reveals that this group of investors realized their profits by selling some of their Bitcoins. This situation is especially evident with the sales of investors with a holding period of 6–12 months (shown with the orange band on the chart).
These investors largely represent the group that purchased Bitcoin during the launch of the spot Bitcoin ETF in early 2024. Their heavy selling may have put downward pressure on the price of Bitcoin during this period. However, strong demand has managed to keep the price of Bitcoin in the $90,000 to $100,000 range.
Some people avoided selling
Investors who have held Bitcoin for more than a year have seen limited sales during this period. In addition, the “Binary CDD” indicator at the bottom of the chart shows a decrease in the sale of old Bitcoins in December compared to November. This suggests that many long-term investors continue to wait for higher prices.
Future expectations
The fact that long-term investors have largely avoided selling even at the $100,000 level reflects market participants’ expectations that Bitcoin could reach higher prices in the future. The strong demand is considered a result of such expectations.
Stay tuned