- The recent price increase of BTC has led to a notable change in market sentiment.
- LTHs have begun to distribute their holdings to make a profit.
Bitcoins [BTC] The recent rally above the $72,000 price region has pushed market sentiment into the ‘Euphoria Zone,’ Glassnode found in a new report. report.
Historically, this phase has been accompanied by new highs in the currency’s value and realized price and a shift in investor behavior.
At the time of writing, the leading crypto asset was exchanging hands at $72,970. Its value has increased by 10% in the past week CoinMarket’s facts.
Glassnode also looked at the realized price of the coin tracks the average price at which all coins in circulation were last bought or sold.
It is striking that the realized price has increased by 54 billion dollars per month.
According to Glassnode, the recent growth in BTC’s realized price mirrors the increase observed during the general market rally in early 2021. It indicates a significant influx of liquidity into the current market.
Glassnode said:
“The Realized Cap is currently rising at a rate of $54 billion per month, approaching levels last seen during the early 2021 run-up. This highlights how important capital inflows have been for Bitcoin, driven in part by its tremendous success and demand to the new US ETF products.”
BTC Realized price
Change in investor behavior
BTC is now trading at an all-time high in its fourth cycle. To this extent there was an increase in the amount of wealth that the ‘young coins’ possessed.
For the uninitiated, these are coins that have changed hands in the last three months.
According to Glassnode, BTC bull cycles are typically characterized by a “transfer of wealth from old to young.”
This happens because investors who purchased their coins at lower prices several months or years ago see the new highs as an opportune time to cash out for profits.
Source: Glassnode
We can assess this shift in accumulation/distribution patterns by observing the coin supply of the LTHs and STHs. According to Glassnode, LTH supply has decreased by 660,000 BTC since its peak in November 2023.
Read Bitcoin’s [BTC] Price forecast 2024-25
In contrast, STH supply increased by 810,000 BTC during the same period.
This cohort of investors obtained their coins from two primary sources: 660,000 BTC transferred from LTHs and 150,000 BTC withdrawn from the exchange balances maintained by Glassnode.
Source: Glassnode
Speaking about this transfer of wealth from an investor class that has held onto their coins for years to new investors, Glassnode concludes that this:
“It reflects a healthy balance between distribution pressure and new demand.”