According to research, new holders are driving the sell-side pressure on bitcoin.

Despite a recent fall that resulted in over $500 million in liquidations, mostly from long positions, Bitcoin (BTC) is still strong and trading near the $100,000 mark. The cohorts causing the sell-side pressure during this current bull run are examined in a recent Glassnode analysis.

The majority of sell-side pressure originates from new competitors in the market.

While some long-term Bitcoin investors make significant profits—more than $2 billion in a single day—not all of them are willing to sell their holdings, according to Glassnode's report, "The Week Onchain."

According to the analysis, the Long-Term Holder (LTH) cohort is profiting from the strong demand and liquidity influx to sell Bitcoin close to its all-time high (ATH) price levels. Notes from Glassnode:

This cohort has now dispersed a non-trivial 507k BTC since the September LTH supply peak. Although this is a sizable volume, it pales in comparison to the 934k BTC spent during the surge that led to the March 2024 ATH.

Bitcoin

To better understand the sell-side dynamics, the paper divides the LTH cohort into sub-cohorts based on realised profit indicators. With $12.6 billion in profits—or 35.3% of all realised gains—holders who purchased Bitcoin between six months and a year ago are the ones who contribute the most to sell-side pressure, according to the report.

Other sub-cohorts have made somewhat lower profits: investors who have held Bitcoin for one to two years have made $7.2 billion, those who have held it for two to three years have made $4.8 billion, those who have held it for three to five years have made $6.3 billion, and those who have held it for more than five years have made $4.8 billion. The report also includes:

The preponderance of coins aged 6 months to 1 year indicates that most expenditures have come from coins that were purchased relatively recently, suggesting that more seasoned investors are staying cautious and possibly waiting patiently for prices to rise.

Increased profit-taking among holders in the 6-month to 1-year period, according to this trend, indicating that the cohort is primarily made up of newer investors, many of whom probably joined the market after the introduction of Bitcoin exchange-traded funds (ETF). Their approach seems to focus on short-term profits while capitalising on the present market boom.

Global Adoption of Bitcoin Is Still Increasing

Some investors may have been wary of the recent price decline, but others believe it was a good correction that would allow the top cryptocurrency to consolidate before the next surge.

Because of the astonishing price of Bitcoin, companies and governments around the world all now seem to have newfound urgency. Subsequently, MicroStrategy’s strategies, the Canadian business Rumble has recently announced that it would buy BTC using some of the funds on hand.

Latest on this was Marathon Digital Holdings CEO, Fred Thiel who said that with Trump now elected for the second term institutional adoption of Bitcoin has surged. As of the writing of this article, the Bitcoin price is $95,462, having surged by 2% in the last 24 hours.

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