Glassnode's weekly report showed that Bitcoin's trajectory is similar to previous cycles. Long-term holders were active during Bitcoin's rise to $100,000, increasing realized gains by $2.1 billion in the process. This year, tokens held for six months to a year have been under the most seller pressure.
Glassnode's Week on Chain report reveals similarities between the current Bitcoin uptrend and previous cycles amid changing market conditions. Meanwhile, long-term investors started distributing tokens at the $100,000 level, and realized profits reached an all-time high of $2.1 billion.
Despite changing market dynamics, Bitcoin maintains historical trends
Bitcoin had a remarkable year in 2024, surging past the key level of $100,000 and posting an annual return of over 130%.
Despite changing market structure dynamics, Bitcoin's current price performance is surprisingly similar to the 2015-2018 and 2018-2021 cycles, according to a weekly report from blockchain analysis firm Glassnode. They say they are similar.
As in previous cycles, selling pressure from sustained price increases remains, but at a much slower pace. The deepest drawdown of the cycle occurred on August 5, 2024, when the price was 32% below its peak.
Similarly, this cycle has been the most volatile since Bitcoin's launch. “For much of the drawdown, prices were only -25% below local highs, masking the fact that this is one of the least volatile cycles in history,” Glassnode wrote. .
This drop in volatility is likely a result of demand from increased institutional investor interest and the introduction of spot Bitcoin exchange traded funds (ETFs).
High demand has also pushed Bitcoin's price above $100,000, even as long-term holders consistently realize an average of $2.1 billion in daily gains.
“Taking the simplifying assumption that all sellers are matched to buyers, this observation provides insight into the strength of the demand side, which in contrast provided an estimated $2.1 billion in new capital to the market. I will.”
BTC Entity Adjusted LTH Realized Profits | Glassnode
Glassnode analysts also highlighted that the size of LTH's profit taking last month exceeds levels seen earlier this year, when Bitcoin reached an all-time high of $73,000 in March.
Despite heavy profit taking from LTH, analysts believe that most of the recent Bitcoin sell-side pressure has been driven by new market entrants, especially those who acquired Bitcoin within the past six months to a year. It was revealed that it was caused by This group realized profits of $27.3 billion and accounted for 38.5% of the total sell-side pressure.
BTC cumulative realized profits by age | Glassnode
Glassnode concluded by highlighting the redistribution of coins from older investors, which “typically occurs in the later stages of a bull market.”
