Glassnode analyst @_Checkɱate pointed out that the recent situation of Bitcoin breaking through its historical high is similar to previous ATHs. Long-term holders have started to take advantage of the new influx of demand to sell their BTC and have driven the price to grow multiple times within 6 to 8 months.
(Bitcoin: The “First Wave of Selling” in the Bull Market is Coming to an End! The Next Phase of Bitcoin’s Rise is Approaching)
(Background: PlanB Predicts Halving Market: Bitcoin to Rise to $100,000! Currently in the Early Stage of the Bull Market, Can Last for a Year)
After breaking through the historical high of the 2021 bull market at $69,000, Bitcoin (BTC) reached a new all-time high of $73,777, signaling a strong bull market. Despite recent fluctuations and corrections, it surged to $70,000 again early this morning and was trading at $69,648 at the time of writing, a 0.3% increase in the past 24 hours.
As the Bitcoin halving is approaching in mid-month, the market is closely watching which stage of the bull market Bitcoin is currently in. In response to this, Glassnode analyst @_Checkɱate posted on Twitter earlier today, suggesting that it may be possible to get a glimpse of this from the “supply situation of long-term holders”.
Glassnode Analyst: Bull Market Progress Seen from Supply of Long-term Holders
@_Checkɱate pointed out that the situation of Bitcoin breaking through its historical high is almost the same as previous ATHs, where long-term holders started to sell their BTC using the new influx of demand and liquidity. These smart investors buy at low points and sell at high points.
Extended Reading: Bull Market Creates 1,500 Millionaire Cryptocurrency Traders Every Day! Kaiko Analysis: BTC Traders Are Taking Profits
The supply of long-term holders (holding for more than 6 months) has significantly decreased, similar to the previous two bull market cycles, which also pushed up the price of BTC. Source: @_Checkɱate
The supply of long-term holders of Bitcoin has currently decreased by about 6%. Source: @_Checkɱate
GBTC accounts for approximately 25% of the expenses of long-term holders. @_Checkɱate also added that the flow of funds in Grayscale’s GBTC and other Bitcoin ETFs is similar to the distribution of supply among long-term holders after breaking ATH in previous cycles. According to calculations:
GBTC (red in the figure below) accounts for about 25% of LTH expenses (blue in the figure below).
ETF demand (green in the figure below) accounts for about 40% of net capital inflows (yellow in the figure below).
If @_Checkɱate’s judgment is correct, along with continued net inflows into spot ETFs and the halving narrative, the price of BTC may reach new highs.
Related Reports:
Will the Peak of the Bull Market Be Delayed? Federal Reserve’s Long-Term Interest Rate Rises Above 2.5% for the First Time in 5 Years
The Current Bitcoin Dip is a “Healthy Correction,” says CEO of Crypto.com: Similar to the Rising Cycle in the 2021 Bull Market
When Will the Bitcoin Bull Market Peak? Seven Indicators to Help You Determine the Exit Point
CryptoQuant: Price Indicator Has Not Yet Reached the Peak of the Bull Market, Bitcoin’s Rising Cycle Will Continue