Bitcoin's price surge continues unabated, reaching its fourth consecutive all-time high this week, now surpassing $72,000. Analysts at Glassnode point to a significant shift in market sentiment towards euphoria as the driving force behind this rally.
They note that there's a healthy balance between the selling pressure from existing holders and the influx of new demand, which often signals the peak of a market cycle. As Bitcoin keeps forging ahead, it underscores the ongoing wealth transfer dynamics between seasoned investors and newcomers to the space.
The latest surge in Bitcoin's price has propelled it beyond the previous cycle's all-time high of $68,999.99, marking the fourth such milestone in the cryptocurrency's history.
Various metrics indicate a striking resemblance to previous instances of breaking all-time highs, with capital actively transitioning from long-term holders to new investors and speculators.
A notable increase in realized profit and futures funding rates has been observed, indicating a rise in profit-taking and a demand for long-side leverage.
Realised profit, reflecting the to
tal wealth stored in Bitcoin on-chain, has seen a significant uptick.
Investors who accumulated Bitcoin at lower prices in earlier stages often intensify their selling pressure as the price reaches new all-time highs. This phenomenon results in a transfer of wealth from established holders to newer participants in the market.
Overall, this dynamic showcases a healthy equilibrium between distribution pressure and fresh demand in the Bitcoin market.
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