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Long-Term Bitcoin Investors Profit as BTC Held at a Loss Decreases
According to CryptoPotato, long-term Bitcoin investors are reaping rewards as the cryptocurrency rallies to multi-year highs above $50,000. Data from Glassnode reveals that although Bitcoin prices remain 28% below their all-time high, the number of BTC held at a loss is rapidly decreasing, with only 13% falling into this category. Since November last year, long-term holders have traded approximately 148,000 BTC, considering the behavior of GBTC (Grayscale Bitcoin Trust). This indicates a potential shift in investor actions, with some BTC being spent and profit-taking becoming more common.
As the market approaches its 2021 highs, Glassnode found that the supply of Bitcoin held at levels higher than this is gradually diminishing. This shift means that a significant majority of investors and their held assets are now in a profitable position, signaling a potential transition phase where long-term holders may begin to divest some of their holdings. Leading up to the approval of spot Bitcoin ETFs in January, the on-chain intelligence platform observed a notable increase in speculative activity in the market. In response, many long-term holders opted to trade their BTC, either to realize profits or possibly to adjust their portfolios to include the new ETF offerings.
Despite the profit-taking events that led to the correction of Bitcoin this week, investors appear to be optimistic about its trajectory. MicroStrategy co-founder and Bitcoin bull Michael Saylor said that the recent introduction of spot BTC ETFs is driving up the price of the premier crypto. During a recent interview with CNBC, the exec attributed this to a significant disparity in the supply of Bitcoin and the considerable demand accumulated over nearly a decade for a dedicated product accessible to retail investors. He even went on to assert that the demand for Bitcoin entering these ETFs is ten times greater than the supply from natural sellers, primarily miners.
As the market approaches its 2021 highs, Glassnode found that the supply of Bitcoin held at levels higher than this is gradually diminishing. This shift means that a significant majority of investors and their held assets are now in a profitable position, signaling a potential transition phase where long-term holders may begin to divest some of their holdings. Leading up to the approval of spot Bitcoin ETFs in January, the on-chain intelligence platform observed a notable increase in speculative activity in the market. In response, many long-term holders opted to trade their BTC, either to realize profits or possibly to adjust their portfolios to include the new ETF offerings.
Despite the profit-taking events that led to the correction of Bitcoin this week, investors appear to be optimistic about its trajectory. MicroStrategy co-founder and Bitcoin bull Michael Saylor said that the recent introduction of spot BTC ETFs is driving up the price of the premier crypto. During a recent interview with CNBC, the exec attributed this to a significant disparity in the supply of Bitcoin and the considerable demand accumulated over nearly a decade for a dedicated product accessible to retail investors. He even went on to assert that the demand for Bitcoin entering these ETFs is ten times greater than the supply from natural sellers, primarily miners.
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