🚀Report: Bitcoin wealth is gradually shifting from long-term holders to new investors
According to a report from Glassnode, during the Bitcoin bull market, the profit-taking of long-term holders and the increase in demand from new entrants have led to a significant transfer of wealth from long-term holders to new investors, which is also one of the signs of the maturity of the Bitcoin market.
The report points out that despite the huge profits made by long-term Bitcoin holders, the demand from new investors remains strong. This phenomenon shows that the depth and diversity of the Bitcoin ecosystem are increasing, thanks to the active participation of institutional and retail investors.
And this year, long-term holders, especially those who hold for 6 to 12 months, have become the main force of seller pressure. Those who have held for more than three years are relatively calm and may need higher prices to stimulate their desire to sell.
This cycle is natural in the Bitcoin market. When prices rise, long-term holders will distribute wealth and new investors will absorb supply. Although veterans are taking profits in large quantities, new investors have shown resilience and provided liquidity to maintain Bitcoin's upward momentum.
Speaking of volatility, the volatility of the current Bitcoin cycle has been reduced compared to the previous bull market. The biggest drop in August was 32%, which was smaller than the corrections in previous cycles. Analysts attribute this stability to increased institutional participation, as well as the launch of spot Bitcoin ETFs and wider acceptance of digital assets.
Although Bitcoin prices have soared more than 150% this year to a record high of $108,600, the market does not seem to be overheated. Glassnode's AVIV ratio (a measure of unrealized profits) shows that the market has not yet reached the typical state of excitement at the peak of the bull market. This means that the market has further potential to rise before profit-taking overwhelms demand.
In summary, the interaction between long-term holders and new demand will continue to be crucial in the changes in Bitcoin price dynamics. Although seller pressure may intensify as prices rise, the current resilience of new investor activity shows that the market has the ability to maintain its momentum.
💬Finally, do you think Bitcoin's wealth transfer will continue to drive the market up?See you in the comments section!
