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Blockchain analytics company Glassnode released its latest weekly report, indicating that after hitting a historic high of $73,100 on March 13th, Bitcoin experienced a maximum pullback of 15.4%, dropping to a low of $61,800 on the 20th before rebounding to $70,000.
Of note, Glassnode found remarkable similarities between the current market cycle and the previous cycle from 2018 to 2021 (in blue), in terms of cycle duration and the timing of the peak reached in April 2021. Currently, the market is in a situation similar to December 2020, suggesting that this cycle has not yet reached its peak.
Glassnode stated that as Bitcoin dropped from its all-time high to a recent low of $61,200, a total of 2 million bitcoins transitioned from a profit to a loss state. After Bitcoin rebounded to $66,500, approximately 1 million bitcoins returned to a profit state.
Profit-taking by long-term holders:
According to the weekly report, when Bitcoin reached $73,200, investors started taking profits, locking in over $2.6 billion in realized profits daily. About 40% of these profits were associated with long-term holders, including investors withdrawing from Grayscale GBTC.
Short-term holders realized profits of $1.56 billion daily. The realized profits of these two major holder groups have reached levels similar to those seen during the peak of the 2021 bull market. With Bitcoin breaking new highs, the proportion of profits taken by long-term holders has increased, a typical characteristic of past Bitcoin cycles.
Glassnode's conclusion:
Bitcoin's market breaking through the $73,000 new high has led to an increase in profit-taking activity by long-term holders. Currently, the market realizes daily profits exceeding $2.6 billion, indicating that many investors are starting to exit. However, this is not atypical market behavior and is consistent with the patterns observed in previous cycles when breaking historical highs. |
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Post time 12-4-2024 09:44:51