Bitcoin (BTC) remains resilient, despite recent adjustments leading to over $500 million in liquidations (mainly from long positions), with trading prices still near the $100,000 mark. A recent report by Glassnode analyzed the group driving selling pressure during the ongoing bull market.
Selling pressure mainly comes from new market entrants.
According to Glassnode's (The Week Onchain) report, while some long-term Bitcoin holders have made substantial profits (over $2 billion in one day), not everyone is willing to part with their held Bitcoin.
The report emphasizes that long-term holders (LTH) are capitalizing on the influx of liquidity and strong demand to sell BTC near historic price levels (ATH). Glassnode notes:
Since the LTH supply peaked in September, this group has distributed a considerable amount of 507,000 BTC. This is a fairly large number; however, it is smaller in scale compared to the 934,000 BTC spent during the price surge in March 2024 ATH.
The report segments the LTH group into subgroups based on realized profit metrics to better understand selling dynamics. The report shows that holders who bought BTC 6 months to 1 year ago contributed the most to selling pressure, realizing $12.6 billion in profits, accounting for 35.3% of all realized gains.
The profits gained by other subgroups are relatively small, with investors holding BTC for 1 to 2 years making $7.2 billion, investors holding for 2 to 3 years making $4.8 billion, investors holding for 3 to 5 years making $6.3 billion, and investors holding for over 5 years making $4.8 billion. The report adds:
Tokens held for 6 months to 1 year dominate, highlighting that most spending comes from relatively newly acquired tokens, which also emphasizes that more long-term investors are remaining cautious and may be patiently waiting for higher prices.
This pattern indicates that the increase in profit-taking among holders over a period of 6 months to 1 year suggests that this group is primarily composed of new investors, many of whom may have entered the market after the launch of Bitcoin exchange-traded funds (ETFs). Their strategy seems to involve short-term gains, riding the wave of the current market surge.
The adoption of Bitcoin continues to grow globally.
While the recent price correction may have raised some investors' caution, others see it as a healthy adjustment that provides some consolidation time for the leading cryptocurrency before the next round of upswing.
The unprecedented price of Bitcoin has created a sense of urgency among global enterprises and nations. Following MicroStrategy's strategy, Canadian company Rumble recently announced it would use part of its remaining cash reserves to purchase BTC.
Recently, Marathon Digital Holdings CEO Fred Thiel stated that institutional interest in BTC has significantly increased since Donald Trump's victory in the 2024 election. As of the time of writing, BTC is trading at $95,462, up 2% in the last 24 hours.
