2024

Bitcoin

Impact

Spot

<ul class="wp-block-list">
 <li>Bitcoin trades above $100K, supported by strong capital inflows and institutional interest.</li>  
 <li>Long-term holders set a record with $2.1B in realized profits during the current liquidity surge.</li>  
 <li>Market drawdowns show reduced volatility, with most declines limited to 25% below local highs.</li> 
</ul>  
Bitcoin continues trading above the $100,000 price level, fueled by steady and consistent capital inflows. This price level, often viewed as psychologically significant, has maintained strength as market participants engage in increased activity. <a href="https://x.com/glassnode/status/1869393009865084991" target="_blank" rel="noopener noreferrer nofollow">Glassnode shows a notable pattern of distribution by long-term holders</a>, who are leveraging the current liquidity surge to offload supply at scale.  
<h2 class="wp-block-heading" id="h-market-drawdowns-show-reduced-volatility-amid-increased-demand">Market Drawdowns Show Reduced Volatility Amid Increased Demand</h2>  
According to glassnode, the severity of market drawdowns during <a href="https://cryptonewsland.com/jerome-powells-rate-cut-drives-crypto-prices-down-bitcoin-hits-101341/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin’s bull market cycles has declined despite notable </a>sell-side pressure. The current uptrend’s deepest drawdown reached -32% on August 5, 2024, while most decline only fell -25% below local highs. Spot ETFs and institutional interest may have bolstered demand, contributing to this reduced volatility.  
<figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcOrux4RarMY5BAnS_Dc4XHHwTY923y-A5IuSiOqtp743SFHk48_BeWnA0KWm5DBQyDVVxZBD-DGpwUbHh40H8BhPapepl3HHG5-jDd6XvAfMDStZOaZDek4Ze6eV0wG0_WFYwxZA?key=luwSXG8pyLEAyi26gqW0uy4m" alt="">
</figure>  
Source: <a href="https://insights.glassnode.com/content/images/size/w1600/2024/12/Group-137692191.png" target="_blank" rel="noopener noreferrer nofollow">glassnode</a>  
<h2 class="wp-block-heading" id="h-short-term-holder-impact">Short-Term Holder Impact</h2>  
Short-Term Holders (STH) remain key contributors to realized losses during uptrends. Metrics reveal August 2023 and September 2024 saw significant drawdowns, marked by unrealized losses among the STH cohort.  
<figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXebpZIxZVWHmmIRW0S_ph3HnCmrCjxRsn3f-FhRzcNb_U49xsjR3_73lFZTrwCU-JR2xlzCtWue9GjOCgBTuerVmhIdVACdV85ff_tCwENSrYcStAeAqslQN8pOBr_PAzSK8uX8?key=luwSXG8pyLEAyi26gqW0uy4m" alt="">
</figure>  
Source: <a href="https://insights.glassnode.com/content/images/size/w1600/2024/12/Group-137692201.png" target="_blank" rel="noopener noreferrer nofollow">glassnode</a>  
Both instances highlighted the top-heavy nature of the market, with a super-majority of coins underwater. These periods of pressure underscored the pivotal role of STH coins in shaping market behavior.  
<h2 class="wp-block-heading" id="h-long-term-holders-capitalize-on-liquidity-as-realized-profit-sets-record">Long-Term Holders Capitalize on Liquidity as Realized Profit Sets Record</h2>  
Long-term Bitcoin holders have been seizing the opportunity provided by current market liquidity to distribute their holdings. This has resulted in a new all-time high for realized profits, reaching $2.1 billion.&nbsp;  
<figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcwA-Jtxy02Q5Y-PVKcJRxTvSI4DJuJN0G0UzYp2E2zYuPwA5V5m1dqjC7SknFn77JZACfo8Ix_UycDuWwFFqY1gjeyeflX9ngHduQ5k6sY_0tKWZ2OAYLVpeIaaG8wH-AVC33XRg?key=luwSXG8pyLEAyi26gqW0uy4m" alt="">
</figure>  
Source: <a href="https://insights.glassnode.com/content/images/size/w1600/2024/12/Group-137692194.png" target="_blank" rel="noopener noreferrer nofollow">glassnode</a>  
The realized profit of $2.1 billion underscores the significant market movement during this period. It reflects the highest profit realized in Bitcoin’s history. This development showcases the ongoing activity among market participants, especially long-term holders, contributing to the overall market dynamics. The combination of consistent capital inflows and strategic distribution by <a href="https://cryptonewsland.com/112000-bitcoin-ath-price-target-remains-despite-market-dump/" target="_blank" rel="noopener noreferrer nofollow">holders continues to shape Bitcoin’s price trajectory</a>. As Bitcoin remains above $100,000, the market exhibits resilience amidst heightened activity and record-setting profit realization. 
The post <a href="https://cryptonewsland.com/bitcoin-above-100k-as-drawdowns-hit-record-lows-is-volatility-declining/" rel="noopener noreferrer nofollow">Bitcoin Above $100K as Drawdowns Hit Record Lows: Is Volatility Declining?</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.

Bitcoin Above $100K as Drawdowns Hit Record Lows: Is Volatility Declining?

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