New investors, holding coins less than three months old, now account for 49.6% of Bitcoin’s network liquidity.
This indicates significant distribution by seasoned investors during the recent price uptrend, with new market participants absorbing the sell-side pressure.
The percentage of #Bitcoin wealth held by new investors (coins aged < 3m) has surged, now representing 49.6% of the network liquidity.
This infers that mature investors have meaningfully distributed coins across the uptrend, with new demand absorbing the sell-side pressure. pic.twitter.com/1qX9EuVgGA
— glassnode (@glassnode) January 10, 2025
Contents
Long-Term Holders Slow Their Distribution
Although Bitcoin prices remain approximately 12% below the all-time high, Long-Term Holders (LTHs) continue to distribute their holdings, albeit at a slower pace. The 30-day percentage change in LTH supply suggests this rate of distribution has likely peaked. Historically, such peaks in LTH distribution have marked extremes in previous market cycles but do not necessarily indicate an immediate end to the bull market.
Even at prices about 12% below ATH, #Bitcoin Long-Term Holders (LTHs) are still distributing, but at a slower rate. Yet, the 30-day percent change in LTH supply suggests that the rate of distribution has likely peaked, reaching extremes seen in previous cycles. pic.twitter.com/3ENkHW8Pvc
— glassnode (@glassnode) January 10, 2025
Does a Distribution Peak Signal the End of the Cycle?
Not always. In past cycles, Bitcoin prices continued to rise even after LTH distribution had peaked. Another critical factor is that the supply of Bitcoin held by LTHs in loss remains at 0%, meaning nearly all of them are still in profit. Historically, the true end of a cycle often coincides with persistent and severe losses among LTHs—something not currently observed.
The Accumulation Trend Score is closer to 0, indicating market participants are distributing or not accumulating #Bitcoin $BTC! pic.twitter.com/miRGXwISvX
— Ali (@ali_charts) January 10, 2025
Accumulation Trends and Whale Movements
The Accumulation Trend Score is nearing 0, reflecting limited accumulation or ongoing distribution by market participants. Meanwhile, a notable whale transferred 612 BTC ($57.6M) to Binance after a year of dormancy. The whale initially withdrew 650 BTC at ~$38,331 in April 2023 and January 2024. If sold at $94,117, this transaction would have generated a $34.14M profit (+146%) in two years.
After 1 year of dormancy, a whale deposited 612 $BTC ($57.6M) to #Binance ~12 hours ago at the peak, likely profiting $34M.
Notably, this whale withdrew 650 $BTC from Binance at just ~$38,331 in Apr 2023 and Jan 2024.
If truly sold at $94,117, the whale would have realized a… pic.twitter.com/hhTXY84AWc
— Spot On Chain (@spotonchain) January 10, 2025
ETF Outflows Highlight Market Trends
Bitcoin ETFs collectively recorded a net outflow of 4,964 BTC ($458.3M) on January 9. BlackRock’s iShares ETF alone saw a withdrawal of 1,319 BTC ($121.8M), leaving its holdings at 557,882 BTC ($51.51B).
Jan 9 Update:
10 #Bitcoin ETFs
NetFlow: -4,964 $BTC(-$458.3M)🔴#iShares(Blackrock) outflows 1,319 $BTC($121.8M) and currently holds 557,882 $BTC($51.51B).9 #Ethereum ETFs
NetFlow: -4,701 $ETH(-$15.21M)🔴#Grayscale Ethereum Mini Trust outflows 3,298 $ETH($10.67M) and… pic.twitter.com/ajQglVGx0e— Lookonchain (@lookonchain) January 9, 2025
These dynamics suggest a complex interplay of distribution, accumulation, and profit-taking, reflecting both opportunities and caution for Bitcoin investors.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: sinenkiy/123RF // Image Effects by Colorcinch
