Analytical company Glassnode announced that Bitcoin has entered a stage of euphoria against the backdrop of updating its historical maximum. The market is witnessing a change of ownership of the first cryptocurrency – the asset is moving from long-term investors to speculators and novice investors.
Investors who bought Bitcoin at a low cost in 2023 began to take profits. This increases the circulation of “young coins” (assets that have moved within the last three months) in the market.
Since last fall, the share of young coins has increased by 138%, which indicates an increase in sales of the first cryptocurrency by long-term holders. Since the end of November 2023, Bitcoin holdings among long-term investors have decreased by 660,000 BTC. In turn, speculators and short-term holders increased reserves by 810,000 bitcoins.
According to Glassnode analysts, past Bitcoin growth cycles have also seen a decline in the number of coins held by long-term investors. The declines ranged from 14% to 25% and created selling pressure on the cryptocurrency as the value rose.
Glassnode specialists note: now short-term holders are accumulating bitcoins, assuming that the price increase will continue.
Previously, Glassnode indicated that the growth dynamics of Bitcoin repeat the periods of past market cycles of 2013–2017 and 2017–2021, but the cryptocurrency market is still at the beginning of a new bullish trend.
