Understanding Bitcoin UTXO: Mid-To-Long Term Holders Responsible For November Correction

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,164,143,097,713	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,164,143,097,713

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	39.59	0.07%	59,162.35	59,160.79	59,160.80

Price Change

Price Change %

Current Price

Bid Price

Offer

39.59

0.07%

59,162.35

59,160.79

59,160.80

High Price	Low Price	Open Price	Prev. Close	52 Week Range
60,016.90	58,821.05	59,076.58	59,121.20	24,750.00 - 73,835.57

High Price

Low Price

Open Price

Prev. Close

52 Week Range

60,016.90

58,821.05

59,076.58

59,121.20

24,750.00 - 73,835.57

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	13:02:50	0.004827	59,160.79	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

13:02:50

0.004827

59,160.79

USD

Price x Volume	Volume	Base Symbol	Related Pairs
272,887,195.21	4,593.92	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

272,887,195.21

4,593.92

Understanding Bitcoin UTXO: Mid-To-Long Term Holders Responsible For November Correction

03/12/2021 7:00pm

NEWSBTC

Data reveals that mostly mid-to-long term holders were selling their Bitcoin during November, thus being responsible for the correction. Bitcoin UTXO Age Shows Mid-Term Holders Sold Their Coins In November As per the latest weekly report from Arcane Research, mid-term holders seem to be behind the decline in BTC’s price during the month of November. The relevant on-chain indicator here is the “UTXO Age.” UTXO stands for Unspent Transaction Output; you can think of it as a Bitcoin mechanic that keeps track of coins on the chain. The UTXO age metric measures how long it has been since a coin on the BTC blockchain was last transacted. Based on the amount of time each coin hasn’t been moved for, the corresponding holders can be categorized into short-term holder (STH), mid-term holder (MTH), and long-term holder (LTH). Arcane Research takes UTXO age shorter than three months as belonging to STH, and longer than one year as LTH. Holders falling in the period in between are termed MTH. Now, here is a chart that compares how the supply belonging to the different Bitcoin holders moved during the month of November: Looks like the mid-term supply reduced over the course of the month | Source: The Arcane Research Weekly Update - Week 47 As you can see in the above bar graph, the Bitcoin short-term supply saw significant growth during the period as it went from 14.9% at the start of the month, to 17.2% at the end. Related Reading | Canada Marks Launch Of First Bitcoin, Ethereum ETFs With Monthly Payouts This growth suggests that some holders in the longer age bands sold off their coins. From the chart, it’s visible that the MTH supply had a sizeable drop during the month. This means that most of the increase in the Bitcoin STH supply can be accounted for by the sell-off from mid-term holders. Also, the one-to-three year supply saw some increase as well. This means that part of the MTH supply matured and entered into this longer age band. Related Reading | “The United States Is Already Mining” Bitcoin… “Maybe,” Says Compass Mining CEO The 3-5 year supply also had a slight decrease in November, suggesting that some of these long-term holders reaped their profits, and thus added to the increase in STH supply. So in conclusion, selling from mostly mid-term holders with some long-term holders may be behind the correction in November. BTC Price At the time of writing, Bitcoin’s price floats around $55.5k, up 2% in the last seven days. Over the past month, the crypto has lost 11% in value. The below chart shows the trend in the price of BTC over the last five days. BTC's price has mostly moved sideways in the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

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