Glassnode: Bitcoin Long-Term Holders Realize $2.1 Billion Daily Profit, Their Holdings Redistributed to New Investors

Odaily Planet Daily News According to a recent report by Glassnode, the ongoing bull market for Bitcoin marks a significant shift in wealth from long-term holders to new investors, and the redistribution of wealth is a sign of the maturity of the Bitcoin market. Long-term holders have been realizing record profits, peaking at $2.1 billion daily, while new investors have enough demand to absorb this supply. According to the report, this trend indicates that the depth and diversity of the Bitcoin ecosystem are continuously expanding, thanks to increased institutional participation and heightened retail interest. In 2024, long-term Bitcoin holders (especially those holding for 6 to 12 months) have become the main contributors to selling pressure. These tokens were primarily acquired earlier this year and account for 38.5% of profits realized since November, totaling $27.3 billion. Meanwhile, Bitcoin held for over three years remains relatively stagnant, indicating that higher price levels may be needed to stimulate sales. The report notes that this is a natural cycle in the Bitcoin market. As prices rise, long-term holders redistribute wealth, allowing new investors to absorb the supply. Despite significant profit-taking by long-term holders, new investors show resilience, providing liquidity to sustain Bitcoin's upward momentum. Metrics associated with short-term holders (STH) highlight their ability to withstand market corrections without triggering a chain reaction of sell-offs. Additionally, compared to previous bull markets, the current Bitcoin cycle has also seen reduced volatility, with a maximum drop of 32% in August, significantly lower than the adjustments in earlier cycles. Analysts attribute this stability to increased institutional participation, while the launch of spot Bitcoin ETFs and the broader acceptance of digital assets have driven this trend. Alongside buying pressure from new retail investors, this institutional demand has greatly supported the market, ensuring liquidity during sell-offs and supporting price resilience.