Binance the largest crypto exchange in the world has recorded an inflow of $500 million in a day following Bitcoin short-term holders and speculators massively taking profits from their positions.
Bitcoin’s current price surge has taken crypto assets to a three-month high resulting in Short-term holders of the asset sending BTC assets to exchanges for profit taking.
The profit-taking spree by Bitcoin speculators has resulted in Binance, recording an inflow of $500 million in one day according to data from Glassnode.
Glassnode, a trusted Onchain analytics platform revealed that Bitcoin Short-term holders are cashing on their positions following the asset surpassing $65,000 recently.
Bitcoin Short-term Holders Swim in Profits
Bitcoin Short-term holders or STH as they are fondly called are entities holding certain amounts of BTC assets for 155 days or less.
This class of Bitcoin investors is currently swimming in profits as a result of Bitcoin’s recent price surge and is currently sending large amounts of their BTC assets to exchanges for profit-taking.
Glassnode tracked this development revealing that on Oct 14, the amount of BTC sent by STH wallets Binance, was the biggest since BTC/USD set all-time highs of $73,800 in March.
Binance recorded STH inflows of 7,127 BTC (about $480 million) in 24 hours following increased onchain activity by Short term holders.
Glassnode reacts to STH profit-taking
Onchain Analytics platform Glassnode reacted to the development from STH wallets acknowledging their healthy profit margins and commending performance after months of lacklustre performance by Bitcoin.
“ Short-Term Holders currently show a profit dominance with their Profit/Loss Ratio trading at 1.2. This metric has recently broken 1 standard deviation above its 90-day mean, signaling a potential positive shift in investor sentiment.” Glassnode stated.
The main difference between Short-term holders and Long-term holders of an asset in crypto lies in the number of days the investors hold their assets without selling them.
Short-term holders usually aim to profit off price surges of a crypto asset while long-term holders are in it for the long game.
Bitcoin at press time is exchanging hands for $67,906 surging by 3.1% in the last 24 hours.