ChainCatcher message, according to a recent report from Glassnode, the sustained bull market in Bitcoin marks a significant shift of wealth from long-term holders to new investors, and the redistribution of wealth is a sign of the maturation of the Bitcoin market. Long-term holders have been realizing record profits, peaking at $2.1 billion per day, 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 continually expanding, thanks to increased institutional participation and heightened retail interest.
In 2024, long-term Bitcoin holders (especially those holding for 6 to 12 months) became the main contributors to selling pressure. These tokens were primarily acquired earlier this year, accounting for 38.5% of the profits realized since November, totaling $27.3 billion.
Meanwhile, Bitcoin held for over three years is relatively stagnant, indicating that higher price levels may be needed to stimulate its sale.
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 long-term holders taking significant profits, new investors have shown resilience, providing the liquidity needed to maintain Bitcoin's upward momentum. Indicators related to short-term holders (STH) highlight their ability to withstand market adjustments without triggering a chain sell-off.
Additionally, compared to previous bull markets, the volatility of the current Bitcoin cycle has decreased. The maximum decline in August was 32%, significantly lower than the correction levels in prior cycles. Analysts attribute this stability to increased institutional participation, and the launch of spot Bitcoin ETFs along with the widespread acceptance of digital assets has driven this trend. In addition to the buying pressure from new retail investors, this institutional demand has also greatly supported the market, ensuring liquidity during sell-offs and supporting price resilience.
