Glassnode: Bitcoin long-term holders make an average of $2.1 billion a day, and their holdings are reallocated to new investors

According to a recent report from Glassnode, Bitcoin's ongoing bull run marks a significant shift in wealth from long-term holders to new investors, and the redistribution of wealth is a sign of the maturity of the Bitcoin market. Long-term holders have been realizing record profits, peaking at $2.1 billion per day, and there is enough demand from new investors to absorb this supply. According to the report, this trend shows that the depth and diversity of the Bitcoin ecosystem continues to expand, driven by increased institutional participation and growing retail interest. In 2024, long-term Bitcoin holders, especially those who have held Bitcoin for 6 to 12 months, have become the main contributors to sell-side pressure. These coins were mainly acquired earlier this year, accounting for 38.5% of the profits realized since November, totaling $27.3 billion. Meanwhile, Bitcoin held for more than three years is relatively depressed, suggesting that higher price levels may be needed to stimulate its sale. The report points out that this is a natural cycle in the Bitcoin market. As prices rise, long-term holders distribute wealth, allowing new investors to absorb the supply. Despite heavy profit-taking by long-term holders, new investors have shown resilience, providing liquidity that has sustained Bitcoin’s upward momentum. Metrics related to short-term holders (STH) highlight their ability to withstand market corrections without triggering a chain sell-off. In addition, the current Bitcoin cycle has also been less volatile than previous bull runs. The largest drop in August was 32%, significantly lower than the corrections in previous cycles. Analysts attribute this stability to increased institutional participation, which has been driven by the launch of spot Bitcoin ETFs and the widespread acceptance of digital assets. In addition to buying pressure from new retail investors, this institutional demand has also greatly supported the market, ensuring liquidity during sell-offs and supporting price resilience.