Over the past two weeks, the bitcoin (BTC) market has seen a noticeable shift in investor behavior.
Short-term BTC holders, often referred to as “paper hands,” have begun to unwind their positions, while long-term investors, called “diamond hands,” have taken the opportunity to increase their holdings, which could signal stability in the market.according to reported CryptoQuant analytics firm.
The analysis reveals that the net positions of short-term holders have decreased significantly. This indicates that this group, influenced by the recent market volatility, has chosen to sell their assets, even if they were at a loss or with minimal gains.
In the following on-chain metric, the red areas represent the flow of these investors who, feeling discouraged by volatility, reduced their exposure to BTC between August and September so far.
“Paper hands” are those who make impulsive decisions. At any sign of a drop in the price of bitcoin, they tend to sell quickly. their assets, being vulnerable and fragile under market pressure.
This behavior is common in times of uncertainty, such as those observed in recent weeks.
Diamond hands remain loyal to bitcoin
In contrast, long-term holders, known as “diamond hands,” have increased their net positions in bitcoin, suggesting strong confidence in the digital asset’s future value.
The green areas in the following graph reflect how these investors, considered more stable and resilient, have seen in the recent price drop an opportunity to accumulate more bitcoinCryptoQuant noted.
This behavior is a bullish signal for the market, since this type of investors They are not influenced by daily fluctuationsbut rather rely on long-term appreciation.
The rise in positions of long-term bitcoin holders suggests that the market could stabilize as they continue to accumulate. The steady flow of bitcoin from “paper hands” to “diamond hands” points to a long-term strengthening of the market.
Unlike impulsive investors, diamond-handed investors hold on to their assets firmly even in the midst of sharp declines. This strength is comparable to that of a diamond, solid and resilient under any pressure.
Long-term investors took advantage of the months of August and September
This behavior has been exploited by the strongest investors during the difficult months of August and September, when bitcoin’s performance fell by 13.59%exceeding the 11.54% drop recorded in the same period of the previous year.
These months They are often complicated for financial markets, including bitcoin.but the “diamond hands” have capitalized on this weakness to continue accumulating.
As for the price of bitcoin, it has recovered after falling below $52,000. Currently, The digital asset is trading at $57,300as can be seen in the following graph TradingView.
As CriptoNoticias indicated, this rebound has been influenced by the spot bitcoin ETFs in the United States, which, after eight consecutive days of net withdrawals, They finally recorded their first day with positive money inflows so far in Septemberthus breaking the longest negative streak since its launch.
The Bitcoin market is undergoing a clear transition. Short-term investors are exiting the game, while long-term investors are consolidating their positions, which could set the stage for a strong market recovery in the future.
