tl;dr
Bitcoin's bull market is leading to a wealth shift from long-term holders to new investors, according to a Glassnode report. Long-term holders are realizing record profits, while new investors are absorbing the supply. Despite profit-taking by long-term holders, new investors are providing liquidity...
Bitcoin's bull market is leading to a significant wealth shift from long-term holders to new investors, indicating a maturing market with increased institutional participation and strong retail interest. Long-term Bitcoin holders are realizing record profits, while new investors are providing liquidity and stability, sustaining the upward momentum and preventing major downturns.
Despite substantial gains, the market shows potential for further upside, with an evolving interplay between long-term holders and new demand being crucial to sustaining momentum. Bitcoin is currently ranked #1 by market cap, with a market capitalization of $1.99 trillion and a 24-hour trading volume of $94.5 billion.
Bitcoin's ongoing bull market has resulted in a significant wealth transition from long-term holders to new investors, as per a Glassnode report. Long-term holders have been realizing record profits, reaching $2.1 billion per day, while new investors have absorbed the supply, highlighting the expanding depth and diversity of the Bitcoin ecosystem.
In contrast, coins held for over three years have remained largely static, suggesting higher price thresholds are necessary to incentivize their holders to sell. The report notes that this redistribution is a natural cycle in Bitcoin markets, allowing new investors to absorb the supply as prices rise.
Despite substantial profit-taking by long-term holders, new investors have shown resilience, providing liquidity that sustains Bitcoin’s upward momentum. These new investors have been able to withstand market corrections, preventing significant downturns and stabilizing the market. Increased institutional participation and reduced volatility have also contributed to market stability.
Bitcoin's price has surged more than 150% in 2024, hitting an all-time high of $108,600 and currently trading at the $100,000 mark after a minor correction. Despite these gains, Glassnode’s AVIV Ratio, which measures unrealized profits, indicates potential for further upside before profit-taking overwhelms demand. The interplay between long-term holders and new demand will remain critical in sustaining Bitcoin's momentum.
At the time of the report, Bitcoin's market cap was $1.99 trillion with a 24-hour trading volume of $94.5 billion. The total crypto market was valued at $3.49 trillion with a 24-hour volume of $247.36 billion and a Bitcoin dominance of 57.00%.