LONG-TERM BITCOIN HOLDERS SELL 300K BTC SINCE NOVEMBER 2023 PEAK 

According to Glassnode’s latest findings, approximately 300,000 BTC has been divested by long-term holders since their supply reached its peak in November 2023, with slightly over half of these transactions reflecting GBTC outflow levels.

The recent surge in Bitcoin’s price to multi-year highs above $50k has rewarded the patience and conviction of long-term Bitcoin investors. Despite Bitcoin’s price still being 28% below its all-time high, Glassnode reports a rapid decrease in the number of BTC held at a loss, with only 13% falling into this category.

Glassnode’s data suggests that long-term holders have traded about 148,000 BTC since November last year, signaling a potential change in investor behavior, with profit-taking becoming more prevalent.

As the market approaches its 2021 highs, Glassnode observes a gradual decrease in the supply of Bitcoin held at levels higher than this. This indicates that a significant majority of investors and their held assets are now in a profitable position, potentially leading to a phase where long-term holders begin to divest some of their holdings.

Before the approval of spot Bitcoin ETFs in January, Glassnode noticed a notable increase in speculative activity in the market. Consequently, many long-term holders chose to trade their BTC, either to realize profits or adjust their portfolios to include the new ETF offerings.

Overall, the balance of supply held by this group of Bitcoin holders has decreased by approximately 299.5k BTC since its peak in November 2023, totaling 14.996 million BTC.

However, it’s crucial to consider the activity of the GBTC product, which saw an inflow of over 661k BTC throughout 2021, categorizing its held supply under ‘long-term holder’ status.

With approximately 151.5k BTC worth of outflows from GBTC, the remaining 148k BTC worth of supply attributed to long-term holders indicates a trend of distribution among this group as the market approaches its all-time high price.

Despite recent profit-taking events leading to Bitcoin’s correction this week, investors remain optimistic about its trajectory.

MicroStrategy co-founder and Bitcoin advocate Michael Saylor mentioned in a CNBC interview that the recent introduction of spot BTC ETFs is boosting the premier crypto’s price.

He attributes 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. Saylor even contends that the demand for Bitcoin entering these ETFs surpasses the supply from natural sellers, primarily miners, by tenfold.

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