Following a sharp sell-off at the $100,000 level, the number of bitcoins held by long-term investors has begun to rise. These changes were recorded by Glassnode.
Also, Long-Term Holders (LTH) show signs of returning to accumulation. After a steep sell-off at $100k, LTH supply is now trending upward. A similar trend was observed after the intra-cycle local top in March last year: https://t.co/34IggK0Gr8 pic.twitter.com/0s0J0dQYij
— glassnode (@glassnode) January 22, 2025
According to experts, a similar trend was observed after the local peak within the cycle in March last year.
The Coin Days Destroyed (CCD) indicator confirmed a decrease in activity from holders.
#Bitcoin‘s Binary Coin Days Destroyed (CCD) indicator shows reduced activity from Long-Term Holders. In practical terms, this means that sell-side pressure has eased and the market may need new catalysts to unlock supply: https://t.co/t5XxA6cRDJ pic.twitter.com/sVvw7GEylO
— glassnode (@glassnode) January 22, 2025
Analysts suggest that the market will require new catalysts to “unlock” supply.
The volume of coin transfers to centralized platforms fell by 54%, from $6.1 billion to $2.8 billion. Holder deposits plummeted by 83%, from $527 million to $92 million.
Meanwhile, #BTC‘s market-wide exchange inflows have dropped from $6.1B to $2.8B (-54%). LTH deposits fell even more, from $527M to $92M (-83%), signaling reduced speculative activity: https://t.co/8aZ0cZXeQF pic.twitter.com/JV1dnQeoK2
— glassnode (@glassnode) January 22, 2025
Specialists also recorded high demand for the leading cryptocurrency from retail investors. The so-called “shrimps” and “crabs” with balances up to 1 and 10 BTC respectively absorbed 25,600 BTC last month, exceeding the asset’s issuance by 1.9 times.
Demand from retail investors for #Bitcoin at prices around $100K remains strong — The Shrimp-Crab cohort (up to 1 and 10 #BTC, respectively) absorbed 1.9x the newly mined Bitcoin supply last month, a total of +25.6k $BTC: https://t.co/l0sjVN2Toi pic.twitter.com/UdzcCWXAGo
— glassnode (@glassnode) January 23, 2025
Similar conclusions regarding the reduction in sell-side pressure from long-term investors were reached by CryptoQuant.
After Bitcoin’s price reached $97,000, capital inflows surged significantly, indicating that many investors were actively taking profits. However, these inflows have since started to decline as the market stabilizes and adjusts to the new price level. This reduction in selling… pic.twitter.com/EtqeZ4FvMb
— Axel ?? Adler Jr (@AxelAdlerJr) January 23, 2025
“The market is gradually adapting to new price levels, […] creating more favorable conditions for further consolidation and reaching the next target,” the report states.
The Sell-Side Risk Ratio metric showed a significant decrease in selling activity. This indicates that much of the planned realization of profits and losses by participants has already occurred.
The Sell-Side Risk Ratio metric evaluates the total volume of both realized profits and losses by investors relative to the size of the asset (measured through the Realized Cap). This metric can be interpreted as follows:
High values indicate that investors are selling coins… pic.twitter.com/DAxFxfWEBJ
— Axel ?? Adler Jr (@AxelAdlerJr) January 23, 2025
“Although the current indicator remains slightly above its long-term average values, its weakening suggests preparation for the next phase of volatility,” the specialists concluded.
Analysts did not support Glassnode’s view regarding retail investor demand. According to CryptoQuant, it remains low, which is a positive signal for continued growth.
In February, the price of the leading cryptocurrency is expected to reach $122,000 before “another consolidation,” according to 10x Research.
Earlier, technical analyst Peter Brandt identified $120,000-150,000 as a target for Bitcoin this year.