Bitcoin Investors Reap Rewards
Long-term Bitcoin investors have been rewarded with the recent rally to multi-year highs above $50k. According to Glassnode, the number of BTC held at a loss is decreasing rapidly, with only 13% falling into this category.
Glassnode’s data also shows that the supply of Bitcoin held at levels higher than the current market price is gradually diminishing. This means that a majority of investors are now in a profitable position, signaling a potential transition phase where long-term holders may begin to divest some of their holdings.
In response to the approval of spot Bitcoin ETFs, many long-term holders have traded their BTC to realize profits or adjust their portfolios. The balance of supply held by this cohort of Bitcoin holders has decreased by approximately 299.5k BTC since its peak in November last year.
However, it’s important to consider the activity of the GBTC product, which saw an influx of over 661k BTC throughout 2021. 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.
Increased Demand for Bitcoin
Despite recent profit-taking events and price corrections, investors remain optimistic about Bitcoin’s trajectory. MicroStrategy co-founder Michael Saylor believes that the introduction of spot BTC ETFs is driving up the price due to a significant demand accumulated over nearly a decade for a dedicated product accessible to retail investors.
Saylor asserts that the demand for Bitcoin entering these ETFs is ten times greater than the supply from natural sellers such as miners.
By
By
By
By
By