- Bitcoin long-term holdersโ profits hit record highs, Glassnode reports.
- Profit-taking hints at a late cycle.
- Institutional demand decrease visible with ETF outflows.
Bitcoin long-term holders have gained more profits in the current cycle than any since 2016โ17. Glassnode reports increased profit-taking and ETF outflows, with a 273-day profitability streak nearing the previous cycle record.
Bitcoinโs long-term holders have realized significant profits in the current cycle, exceeding all previous cycles since 2016โ17. Glassnode, a blockchain analytics firm, indicates this milestone as a late-phase marker in the market.
Bitcoin Long-Term Holders Profiting
Bitcoin long-term holders have experienced a surge in profits this market cycle, with Glassnode reporting figures surpassing any cycle since 2016โ17. Analysts suggest this aligns with typical late-cycle market behaviors. Evidence of increased profit-taking features notably.
Market Implications
Glassnodeโs thorough analysis reveals long-term holders moving holdings to exchanges. This action usually corresponds to profit-taking typical of late bull market cycles, signaling a possible close to the current cycle.
โLong-term Bitcoin holders have already realized more profit in the current market cycle than in every cycle except 2016โ17. The firmโs on-chain data show an uptick in coins being moved from older wallets to exchanges, a pattern typically associated with profit-taking.โ โ Glassnode Team, On-Chain Analytics Platform, Glassnode
Market Pressure and Institutional Demand
These movements have immediate implications for the Bitcoin market, with increased sell-side pressure noted. As spot Bitcoin ETF outflows rise, roughly $975 million was withdrawn over several days. This drop signals a decline in institutional demand.
Broader Market Conditions
The financial landscape shifts with long-term profit streaks reaching peaks, not seen since the 2016โ17 cycle. This historic high highlights profitability among long-term Bitcoin holders, reflecting broader market conditions.
Forecasting Potential Outcomes
Analysts forecast potential outcomes, focusing on financial corrections and possible market shifts. Glassnode emphasizes volatility, warning of turbulence akin to historical patterns as profit-taking persists in the current cycle.
โGrowing sell-side pressure is typical of late-cycle dynamics, and we warn that this phase is historically followed by increased volatility or correction as cash-outs rise.โ โ Glassnode Analysts, Market Analysis Team, Glassnode
About the author
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