Long-term investors have increased their Bitcoin sales as the cryptocurrency approached its all-time high, according to analysts at Glassnode. The monthly sales rate by long-term holders has surged to 257,000 Bitcoin (BTC), with a significant portion, 57%, attributed to Grayscale’s GBTC. Overall, sales rates have seen a 20% increase for the week, and even higher spikes of 44% and 55% for the month and quarter, respectively, marking the most robust rally since the 2021 bull market.
Analysts also examined the flow of capital to centralized platforms (CEX) and observed a notable jump in the average BTC transaction size on Coinbase to 4.3 BTC at the time of spot Bitcoin ETF approvals, compared to the historical range of 0.2 BTC to 1 BTC since 2019.
With Bitcoin hitting an all-time high, holders’ unrealized gains have reached 228%. Long-term investors acquired BTC at an average cost of $20,700, while short-term investors bought at $45,800. This group tends to increase spending as new ATHs are reached, leading to accelerated distribution until they contribute to forming a cycle top.
IntoTheBlock experts highlight that during the ATH update, all Bitcoin holders were in profit, with no wallets experiencing losses or break-even situations. The surge in Bitcoin’s price has been accompanied by heightened whale activity, with transactions exceeding $100,000 totaling $174.2 billion over the past seven days.
The surge in demand for Bitcoin and its sharp price rise can be attributed to significant capital inflows into U.S. spot Bitcoin ETFs launched in January, along with anticipation for the upcoming halving expected in April.