Glassnode's weekly report indicated that Bitcoin's trajectory is similar to previous cycles. Long-term holders were active during Bitcoin's rally to $100K, ramping up realized profits of $2.1 billion in the process. Tokens held for sixmonths to 1 year have attracted the most sell-side pressure this year. Glassnode's Week on Chain report revealed the similarities between the current Bitcoin uptrend and previous cycles amid changing market conditions.
Meanwhile, long-term investors began distributing their tokens at the $100K level, culminating in a new all-time high of $2.1 billion in realized profits. Bitcoin maintains historical trends despite changing market dynamics Bitcoin has witnessed a remarkable year in 2024, surging above the $100K key level, with its yearly returns exceeding 130%. According to blockchain analytics firm Glassnode's weekly report, Bitcoin's current price performance has a striking resemblance with the 2015-2018 and 2018-2021 cycles despite the changing dynamics in its market structure. Like previous cycles, the selling pressure that accompanies sustained price increases has remained but at a much lower pace. The deepest drawdown in this cycle occurred on August 5, 2024, when prices dropped 32% below their peak. Likewise, this cycle has been Bitcoin's least volatile cycle since its launch. The majority of drawdowns have only seen the price fall -25% below the local high, masking this is one of the least volatile cycles to date, wrote Glassnode. This reduced volatility is potentially a result of demand from heightened institutional interest and the introduction of spot Bitcoin exchange-traded funds (ETFs). The high demand has also helped Bitcoin in its charge above $100K despite long-term holders consistently realizing an average of $2.1 billion in profits per da