Bitcoin sales surge as BTC hits record-breaking high
Investors who hold Bitcoin for the long term have been selling more of their holdings as the price of the cryptocurrency reaches new highs, according to analysts at Glassnode. The monthly sales rate of long-term investors has increased to 257,000 Bitcoin, with 57% of this coming from Grayscale’s GBTC. Overall, sales rates for the week have increased by 20%, and for the month and quarter by 44% and 55% respectively. This rally is the strongest since the bull market of 2021.
Analysts have also studied the flow of capital to centralized platforms (CEX) and have noticed that the average size of Bitcoin transactions on Coinbase has jumped to 4.3 BTC at the time of the approval of spot Bitcoin ETFs. In comparison, the historical range since 2019 has been between 0.2 BTC and 1 BTC.
As the price of Bitcoin reaches an all-time high, holders are seeing gains of 228%. The cost of purchasing BTC for long-term investors is $20,700, while for short-term investors, it is $45,800. Analysts explain that this group historically increases spending as new all-time highs are reached, with distribution accelerating until they contribute to the formation of a cycle top.
During the update of the all-time high, all Bitcoin holders were in the profit zone, and no wallets were at a loss or in the break-even zone, according to experts at IntoTheBlock. The rise in Bitcoin’s price has been accompanied by increased activity from whales. In the past seven days, the volume of transactions on the blockchain with amounts of $100,000 or more has reached $174.2 billion.
The demand for Bitcoin and its sharp price rise can be attributed mainly to significant capital inflows into U.S. spot Bitcoin ETFs that were launched in January. Another factor contributing to the growth is the upcoming halving, which is expected to take place in April.
