According to a recent report by Glassnode Insights, Bitcoin’s all-time high in March sparked a surge in profit-taking among long-term holders, although this trend has begun to diminish in recent weeks.
The report highlighted that profit-taking, often initiated by long-term holders, tends to intensify following breaks in all-time highs, but has since shown signs of cooling down.
Examining the balance of assets between long-term Bitcoin holders and new demand, Glassnode’s analysis suggests that the current market is entering the early stages of a euphoric phase or price discovery phase. However, it also cautioned that previous euphoric phases have been marked by numerous price drawdowns exceeding 10%, with many experiencing even deeper corrections of 25% or more.
Since Bitcoin’s all-time high was surpassed in March, Glassnode’s report noted only two significant price corrections exceeding 10%.
Looking ahead, the impending Bitcoin halving event remains a major driver of market speculation. According to Sunny Lu, the Founder of VeChain, the evolving impact of regulation will significantly influence Bitcoin’s trajectory post-halving.
Lu emphasized that regulatory actions have played a crucial role in shaping pivotal price moments since the last halving in May 2020. He cited instances such as multiple former all-time highs reached after the previous halving, particularly following significant regulatory milestones such as the approval of Bitcoin futures ETFs and spot Bitcoin ETFs.
Lu suggested a shift in focus from the traditional understanding of the halving’s impact, which primarily revolves around supply dynamics, to a broader consideration of macroeconomic factors. He noted that the current narrative is moving away from the mathematics of the halving, which naturally reduces supply and increases prices, towards the broader implications of macroeconomic forces on Bitcoin’s price trajectory.
