As long-term holders earn $2.1 billion, Bitcoin's trajectory resembles prior cycles

According to Glassnode's weekly analysis, Bitcoin's trend is comparable to prior cycles.

Bitcoin's run to $100K generated $2.1 billion in gains for long-term investors.

Six-month-to-one-year tokens have seen the biggest sell-side pressure this year.

Glassnode's Week on Chain study showed parallels between the Bitcoin boom and prior cycles in shifting markets. Long-term investors distributed $100K tokens, resulting in a record $2.1 billion in earnings.

Bitcoin rose past $100K in 2024, returning almost 130%.

Despite market changes, blockchain analytics startup Glassnode's weekly analysis compares Bitcoin's price performance to the 2015-2018 and 2018-2021 cycles.

Like prior cycles, persistent price rises have been accompanied by selling pressure, although at a slower rate. Prices plunged 32% below their high on August 5, 2024, the worst downturn in this cycle.

This cycle has been Bitcoin's least volatile since inception. "The majority of drawdowns have only seen the price fall -25% below the local high, masking this is one of the least volatile cycles to date," Glassnode.

Demand from institutional interest and spot Bitcoin ETFs may have lessened volatility.

High demand has helped Bitcoin rise beyond $100K despite long-term holders making $2.1 billion every day.

"If we adopt a simplified assumption that every seller is matched with a buyer, this observation provides some insight into the strength of the demand side, who, by contrast, has provided an estimated $2.1B of fresh capital into the market."

Glassnode researchers noted that LTH profit-taking in the last month exceeds levels seen earlier this year when Bitcoin hit a record $73,000 in March.

Although LTHs are taking big profits, experts say much of Bitcoin's current sell-side pressure is coming from new market participants, especially those who bought Bitcoin within six months to a year. This cohort's $27.3 billion gains account for 38.5% of sell-side pressure.

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