Glassnode and analysts Cryptovizart and Ukuria OC reported that this month’s surge was driven by capital inflows of $62.9 billion over the last 30 days, reflecting a broader momentum within the cryptocurrency market. Institutional investors, particularly through U.S. spot exchange-traded funds (ETFs), absorbed approximately 90% of the sell-side pressure exerted by long-term holders.
Glassnode’s onchain report called “Riding the Liquidity Tide” reveals bitcoin’s capitalization is now placed above silver and Saudi Aramco in global asset rankings. Analysts noted a 61.3% quarterly rise in bitcoin’s value, far surpassing the performance of traditional commodities such as gold (+5.3%) and silver (+8.0%). The market strategists highlighted that stablecoin inflows into centralized exchanges surged by $9.7 billion, underlining strong speculative demand following the U.S. presidential election.
Source: Glassnode’s Weekly Onchain Report #47.
Glassnode’s analysis showed that long-term holders (LTHs) have begun realizing significant profits. Between Oct. 8 and Nov. 13, approximately 128,000 BTC were sold by BTC’s LTHs. Despite increased selling, Glassnode analysts believe bitcoin’s momentum remains intact, supported by strong capital inflows from institutional buyers. The onchain report emphasized the historical tendency for the market to sustain elevated profit levels during bull cycles, suggesting potential for further growth.
Glassnode’s report states:
This is a classic and repeating pattern, where long-term holders begin taking profits whenever price action is strong, and demand is sufficient to absorb it. With a significant amount of Bitcoin still under LTH ownership, it is likely that many LTHs are waiting for higher prices before releasing more coins back into liquid circulation.
Drawing comparisons to prior cycles, the report observes consistent patterns in bitcoin’s macro price behavior. These cycles, lasting between four and 11 months, suggest further room for upward momentum. However, analysts cautioned about potential volatility as unrealized profits increase, often triggering higher sell-side pressure.
Glassnode’s week onchain newsletter further notes:
As the profitability of market investors increases, the elevated potential for new sell-side pressure comes into play. By overlaying the MVRV Ratio with ±1 standard deviation bands, we can construct a framework to assess over and under-heated market conditions.
The role of exchange-traded funds (ETFs) in stabilizing the market was underscored, with weekly inflows averaging $1 billion to $2 billion since mid-October. Glassnode reported that ETFs absorbed significant sell-offs, effectively counterbalancing market imbalances. Yet, as of Nov. 13, LTH sell-side pressure has begun to outpace ETF inflows, a trend last observed in early 2024, which led to market consolidation.
While bitcoin continues its remarkable ascent, analysts warned of challenges ahead. Glassnode emphasized the importance of institutional inflows in sustaining market momentum. Researchers Cryptovizart and Ukuria OC highlighted that rising unrealized profits could amplify volatility but maintained a cautiously optimistic outlook, noting bitcoin’s resilience in navigating cyclical and structural shifts.
