The latest Glassnode analysis illuminates the significant influx of institutional funds into bitcoin, particularly following the green light for American spot Bitcoin Exchange-Traded Funds (ETFs). Contrary to skeptics’ doubts, this inflow has propelled bitcoin’s value to surpass $70,000, marking a 58% increase from its pre-ETF approval price of $42,800.
The report also highlights a rise in daily miners’ rewards from $22 million to $49 million, alongside changes in exchange volumes before and after the U.S. approval of spot Bitcoin ETFs.
Pre-ETF approval, bitcoin’s exchange demand was inconsistent. However, post-approval, a steady and sustainable demand emerged.
Simultaneously, American spot BTC-ETFs recorded an average daily net inflow of fresh funds amounting to $299 million, leading to a daily net capital inflow into bitcoin of approximately $267 million, driving the market to unprecedented highs.
“Overall, this represents a net capital inflow into bitcoin of about $267 million per day.”
Glassnode’s analysis further explores the behavior patterns of long-term holders, who have increased their market presence as BTC approaches record levels. This activity aligns with patterns observed in past cycles, suggesting a calculated response to the market’s upward trajectory and potentially signaling the onset of a new peak in the market cycle.
The analysis of long-term bitcoin holders’ profits reveals an average unrealized portfolio value gain of 228%.
As BTC prices gradually approach their peak levels, long-term investors, currently sitting on an average unrealized profit of about 228%, have begun to activate their selling strategies, explaining the continual decline in bitcoin prices after reaching local highs.
However, Glassnode analysts note that this selling phase by long-term holders has persisted for only 42 days, implying that incoming demand could offset this selling pressure for several more months.
Eventually, the selling and profit-taking phase by long-term bitcoin holders will be neutralized. After which, there will be no objective reasons for massive sales, leading to an accumulation phase by new BTC owners, sustaining demand over the last 42 days.
The ownership ratio of bitcoin volumes between long-term holders and short-term speculators, who provide the main fuel for BTC volatility, is shifting in favor of long-term owners. This shift will inevitably reduce speculators’ role in short-term speculative selling pressure.
BTC volumes from average and small intraday traders will gradually be absorbed by large funds, leading to a transfer of BTC from weak hands to strong, stabilizing the market.