The Switzerland-based blockchain data and intelligence platform noted that holders of 6-12 month old coins have been particularly active sellers, accounting for 38.5% of realized profits since November — totaling US$27.3 billion.
However, investors holding Bitcoin for over three years have largely remained inactive, suggesting they await higher prices.
Despite substantial profit-taking, new investors have demonstrated resilience, maintaining market stability even during corrections. The market’s deepest drawdown of 32% in August proved significantly milder than previous cycles, attributed to increased institutional participation and spot Bitcoin ETF (exchange-traded fund) introduction.
Bitcoin’s price has surged over 150% in 2024, reaching an all-time high of US$108,600. The current cycle’s 638% growth aligns with historical patterns, following gains of 501% (2015-2018) and 1,085% (2018-2021).
Glassnode’s AVIV Ratio, measuring unrealized profits, indicates the market hasn’t reached typical bull market euphoria levels. This suggests potential for continued growth, even as the dynamic between long-term holders and new investors evolves.
This wealth transfer pattern may signal Bitcoin’s maturing market structure, with institutional participation helping to dampen volatility while maintaining upward momentum.
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