Bitcoin Approaches $100,000 Amid Over $500 Million Liquidations
Bitcoin (BTC) is trading near the $100,000 mark despite a recent correction that resulted in over $500 million in liquidations, primarily from long positions. A report by Glassnode examines the factors driving sell-side pressure during this bull run.
Majority Of Sell-Side Pressure Coming From New Market Entrants
According to Glassnode's report titled "The Week Onchain," some long-term Bitcoin holders have realized significant profits—over $2 billion in one day—while not all are selling their holdings. The Long-Term Holder (LTH) cohort has sold 507k BTC since September, which is less than the 934k BTC spent during the March 2024 ATH rally.
The report categorizes LTH into sub-cohorts based on profit metrics. Holders who acquired BTC between 6 months and 1 year ago contribute the most to sell-side pressure, realizing $12.6 billion in profits, which is 35.3% of total realized gains. Other cohorts include:
- $7.2 billion from holders for 1 to 2 years
- $4.8 billion from those with 2 to 3 years
- $6.3 billion from 3 to 5-year holders
- $4.8 billion from investors holding for more than 5 years
The dominance of coins aged 6 months to 1 year indicates that newer investors are driving spending, while longer-term investors are likely waiting for higher prices.
Bitcoin Adoption Continues To Grow Around The Globe
Despite the recent price pullback, some investors view it as a healthy correction that allows for consolidation before another upward move. Bitcoin's rising price has prompted increased interest from corporations and nations globally. Following MicroStrategy’s strategies, Canadian company Rumble announced plans to allocate part of its excess cash reserves to buy BTC.
Marathon Digital Holdings CEO Fred Thiel noted that institutional interest in BTC has surged since Donald Trump's 2024 election victory. BTC is currently trading at $95,462, reflecting a 2% increase in the past 24 hours.
