Iris Coleman
January 22, 2025 06:52
Bitcoin hit a new all-time high of $109,000 after months of consolidation. According to Glassnode, the analysis showed signs of reduced sell-side pressure and potential market volatility.
Bitcoin (BTC) broke previous range conditions, hitting a new all-time high (ATH) of $109,000 after two months of consolidation. This surge comes against a backdrop of waning sell-side pressure, as pointed out in a recent analysis by Glassnode.
Capital Flows and Market Equilibrium
As Bitcoin surpassed $100,000, net capital inflows surged, indicating that investors have made significant profits. However, these inflows have since decreased, suggesting that the market has stabilized as it adapts to the new price levels. Realized Cap, an indicator of the total value stored in Bitcoin, reached $832 billion ATH, growing to $38.6 billion per month.
The Net Realized Profit/Loss metric, which tracks the volume of net capital flows into on-chain USD, shows a significant decline in profit generation, down 93% from a peak of $4.5 billion in December 2024 to $316.7 million.
Reduce sell-side pressure
Indicators such as Coinday Destruction and exchange inflows highlight the decline in sell-side pressure. The binary CDD indicator, which measures the expenditure of ‘holding time’, indicates that many investors have already realized profits within the current price range.
Long-term holders (LTHs) have seen a decline in activity sending BTC to exchanges, with inflows falling from $526.9 million in December to $92.3 million. This marks a shift from distribution to accumulation, with signs of increasing LTH supply.
Strengthening volatility indicators
Several indicators of volatility are showing signs of tightening. The historically tight 60-day price range suggests the market is poised for another significant move. The Realized Supply Density indicator indicates that 20% of Bitcoin supply is concentrated within ±15% of the current spot price, increasing potential volatility.
The sell-side risk ratio, which evaluates the size of realized profits and losses compared to the realized limit, has decreased sharply. This indicator means that most profit-taking activities have been implemented, which indicates regional balance and portends potential volatility.
conclusion
The recent surge in Bitcoin price to a new ATH of $109,000 reflects the complex interplay of waning sell-side pressure and strengthening volatility indicators. With the market stabilizing above $100,000, investors and analysts are closely monitoring these indicators for signs of the next potential market move.
For more insights, visit Glassnode’s original analysis here.
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