The beneath is from a latest version of the Deep Dive, Bitcoin Magazine’s premium markets e-newsletter. To be among the many first to obtain these insights and different on-chain bitcoin market evaluation straight to your inbox, subscribe now.
One of the most typical patterns in bitcoin’s on-chain historical past is that of the long-term holders stacking sats throughout bear markets after which promoting a few of their positions for profit-taking close to the tops of bull markets. Right now, long-term holder provide is hitting new all-time highs as we brace for bitcoin’s subsequent bull transfer up.
We final lined long-term holder provide revenue dynamics in The Daily Dive #078. The definitions of Glassnode’s long-term holders and short-term holders could be discovered here.
As new demand enters the market within the later stage of the bull cycle, long-term holders promote bitcoin to new market entrants, i.e., short-term holders, till the market promoting and shopping for is exhausted. This usually alerts the native market worth high as new demand is keen to purchase at any worth. Price then cools off and long-term holders begin accumulating once more.
