Glassnode, a company specializing in analytics teamed up with Cryptovizart, a researcher to conduct an analysis shedding light on the key factors driving Bitcoins surge, to new heights ahead of its upcoming halving event. The study delves into the behavior of the market and the significant role played by term Bitcoin BTC -2.18% holders.
The report by Glassnode reveals an increase in investments pouring into Bitcoin particularly following the approval of U.S. Spot Bitcoin Exchange Traded Funds (ETFs). Despite doubts from skeptics this development propelled Bitcoin to reach an all time high of $70,000 week reflecting a 58% surge from its previous value of $42,800 prior to the ETF approvals.
The report also points out a transformation in the Bitcoin market dynamics as evidenced by a rise in miner rewards from $22 million to $49 million per day. Moreover there were shifts in exchange flows before and after the approval of U.S. Spot Bitcoin ETFs. Prior to the endorsements exchange flows showed inconsistency; however, post approval there was demand with withdrawals amounting to $17 million as, per Glassnodes findings.
At the time Bitcoin exchange traded funds (ETFs), in the U.S. Experienced a daily increase of $299 million leading to a total daily capital inflow of about $267 million into Bitcoin. This surge played a role in driving the market towards reaching record highs indicating a positive momentum in the market. According to Glassnodes report there was an estimated capital inflow of around $267 million per day into Bitcoin marking a change in market dynamics and providing a logical explanation for the markets resurgence to historic levels.
Moreover the actions of long term holders of Bitcoin were closely scrutinized, revealing their increased presence in the market as Bitcoin approached its peak prices. This trend is reminiscent of patterns observed in cycles hinting at a response to the upward movement of the market and potentially signaling the onset of a new market cycle peak.
As Bitcoin prices approached their point long term investors with an unrealized gain of, around 228% began to intensify their selling activities.
Glassnodes analysts have pointed out that long term holders have been selling for 42 days. This suggests that if the current trend continues the ongoing demand could counterbalance the selling pressure for a while. The detailed analysis, from Glassnode reveals how institutional investments and the actions of long term holders are influencing Bitcoins path, towards highs.