Crypto markets are often dominated by spectacular movements, but behind this apparent volatility lies a much more strategic dynamic. Indeed, long-term holders of bitcoin, silent during quiet periods, have emerged as key players in supply management and price rediscovery. A recent analysis from Glassnode sheds more light on their essential role in the crypto landscape, where demand and supply balance under unprecedented dynamics.
A strategic redistribution of the Bitcoin supply
Long-term bitcoin holders, often seen as guardians of the ecosystem, have adopted an active posture. Glassnode reveals that they sold over 500,000 BTC during the last price peak at $96,471. This wave of transactions comes after a constant accumulation, which peaked in September. Thus, “these holders contribute significantly to the rediscovery of prices, through the reinjection of a previously inactive supply into the market”, explain the report. This activity also resulted in a record level of realized profits of $2.02 billion per day, an all-time high.
Such a strategy, although marked by significant volumes, is nevertheless measured in relation to previous cycles. In comparison, nearly 934,000 BTC had been sold before the March 2024 rally. This reduction in the total volume sold suggests an adaptation of behavior to new market conditions, which reinforces the idea of optimized management of the offer.
Demand issues and reaccumulation prospects
Such massive redistribution provides information on another key factor: the strength of demand. According to Glassnode, “robust demand is needed to absorb this surplus and stabilize the market.” The resilience of this demand will be crucial in the coming months, in particular to maintain liquidity and encourage possible reaccumulation. This process, often discreet, could signal the start of a new cycle, and influence investors' expectations and strategies.
At the same time, this reorganization of the offer could have more profound consequences. As long-term holders readjust their positions, the dynamic between accumulation and liquidation is redefined. This development also raises the question of the impact on the confidence of institutional investors, who are often attentive to the stability of supply and demand.
The active role of long-term holders in managing bitcoin's supply illustrates their ability to significantly influence the market. If these strategic movements respond to immediate profit objectives, they also mark a phase of maturation for the ecosystem, where coordination between supply and demand becomes crucial.
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