NewsBTC
Jan 23, 2025
10 1

Bitcoin Profit-Taking Volumes Fall 93% From December Highs

Bitcoin (BTC) reached a new all-time high of $108,786 after testing the $90,000 level multiple times. A report from Glassnode indicates that this sustained consolidation may be ending, potentially leading to significant price movement.

Profit-Taking Decline

  • BTC profit-taking volumes dropped from $4.5 billion in December to approximately $316.7 million, a 93% decline.
  • This reduction signals lower sell-side pressure and suggests potential market volatility.
  • About 20% of Bitcoin’s supply is within a 15% price band around the current spot price, indicating sensitivity to small price movements.
  • CoinDay Destruction (CDD) values have cooled off recently, showing less activity from long-term holders.

Long-Term Investors and Retail Demand

  • The Long-Term Holder (LTH) Supply has decreased significantly but shows signs of stabilization.
  • LTH inflows to exchanges fell from $526.9 million in December to $92.3 million.
  • Retail demand remains strong, with investors holding less than 10 BTC purchasing about 25,600 BTC last month, compared to just 13,600 BTC mined during that time.
  • Current BTC price stands at $104,207, reflecting a 0.5% increase over the past 24 hours.

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