A recent Glassnode report highlights that approximately 84% of Bitcoin’s supply is now profitable, mirroring a similar situation from November of the previous year. Despite these profits, there has been no significant move by long-term holders to liquidate their assets. This behavior suggests a potential ‘euphoria phase’ as holding patterns exceed the historical average by a considerable margin.
The accumulation trends have shown remarkable strength, with recent rallies outperforming those earlier in the year and contributing to a nearly forty percent price increase over the past month. Long-term holders are now controlling more Bitcoin than ever before, with holdings reaching an all-time high of about 14.9 million BTC. In contrast, the supply held by short-term holders has hit an all-time low of approximately 2.3 million BTC.
This disparity between long-term and short-term holder supply could indicate that substantial unrealized gains may be necessary before increased selling pressure occurs. The market trading has surged to year-to-date highs, with over 83% of Bitcoin now profitable. However, the modest unrealized profits have not yet compelled long-term holders to sell, despite strong accumulation signals and supply holdings that exceed historical averages by significant margins.
The current market conditions, coupled with the strategic holding by long-term investors, suggest a bullish sentiment that could potentially lead to an emerging bull market. As the crypto asset’s trading volume decreased significantly by over half to $8,399,760,280 on Sunday, the market is closely watching these trends to gauge the future trajectory of Bitcoin’s value.
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Source: Cryptocurrency - investing.com
