As Bitcoin neared an all-time high, long-term investors exhibited a surge in sales, notably impacting the cryptocurrency market. Glassnode analysts revealed that the monthly sales rate for long-term investors had risen to 257,000 Bitcoin (BTC), with a substantial 57% attributed to Grayscale’s GBTC. This increase amounted to a 20% rise in sales rates for the week, while monthly and quarterly figures spiked by 44% and 55%, respectively, marking a rally reminiscent of the potent 2021 bull market.
A closer examination of capital flows to centralized platforms (CEX) unveiled a noteworthy development: the average BTC transaction size on Coinbase surged to 4.3 BTC coinciding with spot Bitcoin ETF approvals. This marked a stark departure from the historical range observed since 2019, which fluctuated between 0.2 BTC and 1 BTC.
As Bitcoin achieved an all-time high (ATH), holders’ unrealized gains peaked at an impressive 228%. The acquisition cost of BTC for long-term investors stood at $20,700, in contrast to the $45,800 for short-term investors. Analysts elucidated that this particular group historically boosts spending as new ATHs are attained, contributing to a cycle top through accelerated distribution.
Insights from IntoTheBlock experts underscored the remarkable aspect that during the ATH update, all Bitcoin holders found themselves in the profit zone, with no wallets registering losses or residing in the break-even territory. The surge in Bitcoin’s value coincided with heightened whale activity, evidenced by a seven-day transaction volume on the blockchain surpassing $174.2 billion for amounts exceeding $100,000.
The impetus behind Bitcoin’s increased demand and sharp price ascent can be primarily attributed to substantial capital inflows into U.S. spot Bitcoin ETFs launched in January. Additionally, analysts cite the upcoming halving in April as another contributing factor to the cryptocurrency’s growth trajectory.
