Bitcoin Long-Term Holders Begin Distribution
Industry analytics provider Glassnode has reported that long-term holders are starting to distribute BTC and sell to new investors at higher prices, injecting new capital into the asset class and driving the realized cap to new heights.
BTC Correction at 10%
Analysis was conducted as Bitcoin approached its all-time high for the second time and before markets began to retreat this week. BTC hit a peak price of $73,734 on March 14, pulled back around 17%, and returned to $71,550 on March 28 before resistance proved too strong. The digital currency retreated just below $65,000 during the Wednesday morning Asian trading session, dropping to $64,573 before recovering to $66,300.
- Bitcoin is currently 10% down from its all-time high.
- The realized cap also hit a new all-time high of $540 billion and is increasing at a rate of over $79 billion per month.
- Glassnode analyzed the distribution of USD-denominated wealth held across various age bands using the Realized Cap HODL Wave metric.
Shift in Investor Behavior Patterns
Glassnode noted a sharp increase in coin-ages younger than three months, with newer investors now owning about 44% of the aggregate network wealth. The research concluded that there has been a distinct shift in investor behavior patterns.
“Long-Term Holders are well into their distribution cycle, realizing profits, and re-awakening dormant supply to satisfy new demand at higher prices,” Glassnode suggested.
The realized cap is climbing because old coins are being revalued higher, primarily due to HODLers selling.
Market Sentiment and Altcoins
There is still optimism in the market, with a belief that Bitcoin is in a bull market. Total market cap is down 3% on the day to $2.65 trillion, which is approximately 15% lower than its all-time high set back in November 2021.
- Altcoins have not shown significant movement during this market cycle, with most in the red.
- Ethereum is down 2% at $3,300.
- XRP has lost 2.5%, falling to $0.584.
- Dogecoin dropped 3% to $0.185.
Hot Take: Evolving Bitcoin Behavior Amid Market Corrections
As Bitcoin continues its journey, it is essential to monitor the evolving behavior of long-term holders and new investors in response to market corrections. Analyzing the distribution of wealth across different age bands provides valuable insights into the shifting dynamics within the cryptocurrency space. Despite recent price corrections, the overall sentiment remains optimistic, indicating potential opportunities for both long-term investors and traders in this evolving market landscape.
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