Bitcoin rally intact despite long-term holders cashing out – How?
The post Bitcoin rally intact despite long-term holders cashing out – How? appeared on BitcoinEthereumNews.com.
Long-term Bitcoin holders have accelerated selling activity as BTC forms successive new highs. Spot Bitcoin ETFs are absorbing the sell-side pressure, giving room for BTC to extend its rally. Bitcoin [BTC] continues to outshine altcoins with successive all-time highs. At press time, BTC traded at $97,350, with a market capitalization of $1.92 trillion. Since the start of Q4, BTC has gained by 52%. In its weekly on-chain report, Glassnode noted that all long-term Bitcoin holders are now in profit. However, the Net Unrealized Profit/Loss (NUPL) metric for these holders stood at 0.75, suggesting that they are yet to reach the euphoria or greed phase. Source: Glassnode Long-term holders usually sell the top and buy when the prices are low. A repeat of this pattern is underway after their holdings dropped by more than 200,000 BTC when Bitcoin broke past $75,000 two weeks ago. Long-term holders hold 14 million BTC per Glassnode. As such, accelerated profit-taking could stall Bitcoin’s rally. However, two factors have prevented Bitcoin from succumbing to the sell-side pressure: the anticipation of higher prices and institutional demand absorbing the sold coins. Spot Bitcoin ETFs are absorbing selling pressure Institutional demand in Bitcoin, through spot Bitcoin exchange-traded funds (ETFs), has been absorbing the sell-side pressure exerted by long-term holders. Data from SoSoValue shows that in the past week, weekly inflows to these ETFs have averaged between $1 billion and $2 billion. Per Glassnode, between 8th October and 13th November, Bitcoin ETFs absorbed 93% of the coins sold by long-term holders. This played a key role in stabilizing prices. However, over the past week, long-term holders have accelerated selling activity, with this sell-side pressure outpacing the demand from ETFs. If there is an imbalance between supply and demand, it could result in price volatility. Are short-term Bitcoin holders also taking…
Filed under: News - @ November 22, 2024 6:22 am