Mid- to long-term holders responsible for the November amendment

The data shows that most mid-to-long-term holders sold their bitcoins during November and are therefore responsible for the correction.

The Bitcoin UTXO era shows mid-term holders sold their tokens in November

According to the latest weekly report Arcane Research, The mid-term holders seem to be behind the BTC price decline in November.

The relevant on-chain indicator here is the “UTXO Era”. UTXO stands for Unspent Transaction Output; you can think of it as a Bitcoin mechanism for tracking coins on the chain.

The UTXO age indicator measures how much time has passed since the last transaction of coins on the BTC blockchain.According to the length of time each coin has not been moved, the corresponding holders can be divided into short-term holders (STH), medium-term holders (MTH) and Long-term holder (LTH).

Arcane Research classified UTXOs shorter than three months as STH, and longer than one year as LTH. The holder in between is called MTH.

Now, here is a chart comparing the changes in the supply of different Bitcoin holders in November:

Looks like the mid-term supply reduced over the course of the month | Source: The Arcane Research Weekly Update - Week 47

As can be seen from the bar chart above, the short-term supply of Bitcoin has increased significantly during this period, from 14.9% at the beginning of the month to 17.2% at the end of the month.

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This increase indicates that some holders in the longer age range have sold their tokens. It can be seen from the chart that the supply of MTH dropped sharply during the month.

This means most of Bitcoin’s growth STH supply This can be explained by the selling of mid-term holders.

In addition, the supply of one to three years has also increased. This means that part of the MTH supply has matured and entered this longer age range.

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In November 3-5 years, the supply also dropped slightly, indicating that some long-term holders have profited, thereby increasing the supply of STH.

Therefore, all in all, the sell-off mainly by medium-term holders and some long-term holders may be the reason for the November revision.

Bitcoin price

At the time of writing, Bitcoin price Floating around USD 55,500, it has risen by 2% in the past 7 days. In the past month, the value of cryptocurrencies has fallen by 11%.

The chart below shows the price trend of BTC over the past five days.

Bitcoin price chart

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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