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According to Glassnode, new capital is being injected to support Bitcoin as long-term holders make distributions to new entrants

According to on-chain analytics firm Glassnode, longer-term Bitcoin (BTC) holders have started selling their coins to new investors entering the market.

In a new report, Glassnode says Bitcoin's recent move into price discovery above new all-time highs has enticed holders who were well into profits to distribute to a newer cohort of investors.

The company uses the “Realized Cap” metric, which records the price at which each coin moves and aims to estimate how many holders are making profits or losses. According to Glassnode, this metric is currently at an all-time high.

“This results in issued coins generally being converted from a lower cost basis to a higher one. As these coins change hands, we can also view this as an influx of new demand and liquidity in the asset class.

This mechanism is elegantly expressed by the “Realized Cap” metric, which tracks the cumulative USD liquidity “stored” in the class asset. The realized cap is now at a new ATH of $540 billion and rising at an unprecedented rate of over $79 billion per month.”

Source: Glassnode

Glassnode says 44% of all BTC in circulation is now held by newer addresses that have been owned for less than 3 months. Based on the company's data, crossing the 44% mark has historically coincided with mid-stage bull markets.

“If we differentiate by coin ages younger than 3 months, we can see a sharp increase in recent months, with these newer investors now owning around 44% of total network assets.” This increase in younger coins is a direct result of that Long-term holders issue their coins at higher prices to meet the wave of increasing demand.”

Source: Glassnode

At the time of writing, BTC is trading at $65,004, 18% below its all-time high.

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