Originally published on: November 27, 2024
Bitcoin investors were thrilled when long-term holders secured over $2 billion in profit within a single day. However, not everyone was eager to part ways with their BTC.
In the recent issue of “The Week Onchain” newsletter by Glassnode, a surprising split among Bitcoin’s investors was uncovered. While speculators faced challenges due to market volatility, seasoned investors decided to cash in their profits by selling off their long-held coins.
Despite concerns that this selling frenzy might surpass new capital inflows, Glassnode assured that true Bitcoin veterans were not looking to reduce their exposure to BTC. A closer look at the data revealed that most of the profit-taking action was coming from entities holding coins for six to 12 months.
As researchers scrutinized the composition of the supply being sold, they found that coins aged between 6 months and 1 year accounted for a significant chunk of the total sell-side pressure. This raised questions about whether these investors were institutional buyers who entered the market after the launch of ETFs with the intention of riding the next market wave.
Interestingly, data also showed that the recent days witnessed net outflows of over $550 million from US spot Bitcoin ETFs. These outflows coincided with a drop in BTC/USD prices from record highs to local lows, impacting equities buyers as well.
For instance, business intelligence firm MicroStrategy, known for its large Bitcoin reserves, experienced a 35% decline in its stock price over four days while continuing to accumulate BTC.
While this article doesn’t offer investment advice, it sheds light on the intricate dynamics of the Bitcoin market. To stay informed about such trends and explore more insightful articles, subscribe to our Markets Outlook newsletter today. Join us every Monday for critical insights to enhance your investment strategies and decision-making.
