Altcoin holders moved from profit-taking to loss-taking by end-October, Glassnode says

Recent holders selling at a loss

Profit-taking among recent altcoin holders had given way to loss-taking by end-October, according to Glassnode. Fewer than half of major coins in a separate market index were beating Bitcoin over 90 days.

Altcoins are cryptocurrencies other than Bitcoin. Short-term holders are people who bought recently.

Key numbers from both reports

• Glassnode said short-term holders were spending at a profit in about 12% of its more than 300 tracked tokens by end-October.
• That was down from about 80% in late September.
• BlockchainCenter put its 90-day Altcoin Season Index at 41 on Nov. 4.
• A reading of 41 means fewer than half of its eligible major coins had beaten Bitcoin over 90 days.

What Glassnode measured

Glassnode used short-term-holder spent output profit ratio, or STH-SOPR, to measure whether recent holders sold at a profit or a loss. In simple terms, it compares the price at which coins were last moved with the price at which they sold.

A reading above 1 means profitable selling. A reading below 1 means selling at a loss. Glassnode said typical tracked tokens had short-term holders selling at a small loss by end-October.

Why the two signals are not the same

The two reports used different groups of tokens and different time windows. Glassnode tracked more than 300 tokens and focused on whether recent holders sold at a profit. BlockchainCenter tracked eligible major coins and focused on performance against Bitcoin over 90 days.

Because of those differences, the material does not confirm fresh altcoin buying or a durable market bottom. A market bottom means the lowest point before a lasting rise, and the sources do not establish that.

Where this information comes from

• CryptoSlate