Bitcoin Long-Term Holders Indicate Bull Run Progression at 40%
A unique insight into the behavior of long-term Bitcoin holders suggests that the ongoing bull run has progressed approximately 40% of the way towards its completion. Glassnode’s lead analyst, Checkmate, elaborated on the recent actions of these investors who have held onto their Bitcoin investments for over six months. Typically, long-term holders exhibit resilience and are less likely to sell, making their selling activity significant.
Historically, during bull runs, long-term holders tend to distribute their holdings after Bitcoin surpasses its previous all-time high price. With extended holding periods, these investors accumulate substantial profits and begin selling when there is high demand during bull rallies. Checkmate highlighted that the recent ATH break of the cryptocurrency resembles past instances, as long-term holders have already initiated selling.
Graphs demonstrate a recent decline in the supply held by Bitcoin long-term holders. It is important to note that there is a delay between buying activity and the subsequent increase in supply. Newly acquired coins must age for six months before being considered part of the cohort’s holdings. Conversely, there is no delay in drawdowns, as the age of the coins immediately resets to zero when they exit the group.
Considering the average drawdown in the supply held by long-term holders, Checkmate concludes that the current Bitcoin cycle has likely completed about 40% of this selling process. The price of Bitcoin has surged in the past 24 hours, reaching $71,800.
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