Blockchain analysis company Glassnode has released its latest weekly report, which points out that Bitcoin has fallen by 15.4% after reaching a new all-time high last month. This is very similar to the previous cycle from 2018 to 2021. As Bitcoin broke new highs, long-term holders started to increase their profit-taking activities. Currently, the market is realizing daily profits of over $2.6 billion.
Glassnode found that the current market cycle has astonishing similarities to the previous cycle from 2018 to 2021, in terms of cycle duration and the timing of reaching the peak in April 2021. The current market is in a similar situation to December 2020, indicating that this cycle has not yet reached its peak.
Glassnode discovered that when Bitcoin fell from its all-time high to a recent low of $61,200, a total of 2 million Bitcoins went from a profitable state to a loss. After Bitcoin rebounded to $66,500, approximately 1 million Bitcoins returned to a profitable state.
According to the weekly report, when Bitcoin reached $73,200, investors started to take profits, resulting in a daily lock-up of over $2.6 billion in realized profits. Approximately 40% of these profit-taking activities were related to long-term holders, including investors withdrawing from Grayscale GBTC.
Short-term holders are realizing daily profits of $1.56 billion, and the realized profits of both these two major holder groups have reached levels similar to the peak of the 2021 bull market. As Bitcoin breaks new highs, the proportion of profit-taking activities by long-term holders has increased, which is a typical characteristic of past Bitcoin cycles.
In conclusion, Glassnode’s analysis concludes that the current market cycle is following a similar pattern to the previous cycle, and it highlights the profit-taking activities of long-term holders as a significant factor in the market.