Bitcoin’s Wealth Redistribution in Bull Market
Bitcoin’s ongoing bull market has highlighted a significant shift in wealth from long-term holders to new investors, as per a recent report by Glassnode.
Key Points:
- Long-term holders cashing out profits, totaling $2.1 billion per day.
- New investors absorbing supply, showcasing market maturity.
- Growing institutional participation and strong retail interest boosting Bitcoin ecosystem.
Demand meets profit-taking
Despite profit-taking by long-term holders, new investors have provided liquidity to sustain Bitcoin’s upward momentum without triggering widespread sell-offs.
Market Stability Factors:
- Short-term holders resilient during market corrections.
- Reduced volatility compared to previous bull markets, with a 32% drawdown in August.
- Institutional participation and acceptance of digital assets contributing to stability.
Further Upside
Bitcoin’s price surge of over 150% in 2024, reaching an all-time high of $108,600, indicates potential for further growth with Glassnode’s AVIV Ratio suggesting room for upside before profit-taking takes over.
Market Data:
- Bitcoin ranked #1 by market cap with a market capitalization of $1.99 trillion.
- Price currently at $100,000, down 5.44% in the past 24 hours.
- Total crypto market valued at $3.49 trillion with a 24-hour volume of $247.36 billion.
