According to Glassnode, Bitcoin is on the verge of hitting $100,000 after breaking a series of all-time highs. This price surge led long-term holders (LTHs) to significantly increase their circulation, taking advantage of the lucrative market conditions.
Intense long-term holder distribution
During the rally, LTH distributed 507,000 BTC, resulting in significant asset turnover. This volume is less than the 934,000 BTC offloaded during the March 2024 peak, but is still notable. Distributions reflect a strategic move by holders to take advantage of increased liquidity and demand.
Currently, about 0.27% of LTH supply is being sold daily, exceeding the highest reached last March. This means a more aggressive distribution strategy, with much of the sell-side pressure coming from coins that are between six months and one year old.
Profit is fixed
Long-term holders are realizing unprecedented returns, with daily realized profits reaching an all-time high of $2.02 billion. Such profit-taking would require strong demand to absorb excess supply, potentially requiring a period of re-accumulation to stabilize prices.
The distribution pattern indicates a strategic profit-seeking approach, with relatively recently acquired coins contributing significantly. This behavior points to a swing trading strategy in which investors take advantage of market volatility following the ETF’s launch.
Sustainability Measures
The sustainability of the current upward trend can be assessed by comparing it to the all-time high in March 2024. During the previous cycle, the supply cluster between $40,000 and $73,000 became an important area of support. The current rapid price increase has left little trading between $76,000 and $88,000, suggesting potential volatility in this range.
As the market seeks balance, changes in supply distribution will provide insight into potential areas of demand. Sell-side risk ratios indicate significant profit taking but are still below previous cycle highs, suggesting there is room for additional supply absorption.
Overall, the continued distribution by long-term holders highlights the dynamic interplay of supply and demand as Bitcoin approaches its $100,000 target.
For more information, see Glassnode’s original report.
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