Glassnode: Individual Investors Crushed Supply, Bitcoin Strengthened to 100 Thousand! - Coin Bulletin

Glassnode's latest report reveals significant changes in the market following Bitcoin's rise to $100,000.

As the intense profit realization period of investors comes to an end, net capital inflows have slowed down and the market is adjusting to this new price level. This indicates that less fresh capital is needed to support Bitcoin's price and a significant transformation in terms of supply-demand balance has occurred.

Realized Market Cap, which has reached $832 billion, the highest level ever, and is showing a monthly growth of $38.6 billion. However, a profit realization that has dropped from $4.5 billion, the peak of profit realization in December 2024, to $316.7 million today (-93%) is noteworthy. This sharp decline indicates that the market has significantly reduced selling pressure and suggests that the Bitcoin price can be more stable at current levels.

Decrease in Supply Pressure

The report presents more evidence that the selling pressure on Bitcoin has decreased. In particular, the Coinday Destruction metric shows that investors have become less active in spending their old coins. This decline in the metric indicates that many investors have completed their profit realization processes and that selling pressure has decreased in the market.

A similar pattern can be seen among long-term investors (LTH). In December, as the supply of long-term investors decreased, this trend paused in the later days of January and accumulation behavior started to emerge again. LTHs are currently more inclined towards accumulation rather than selling, indicating that HODLing behavior has outweighed selling pressure.

Movements on centralized exchanges also confirm the market shift. Bitcoin inflows to exchanges dropped from the peak of 6.1 billion dollars in December to 2.8 billion dollars (-54%). Meanwhile, inflows from long-term investors decreased from 526.9 million dollars to 92.3 million dollars (-83%) during the same period. This indicates that long-term investors have largely realized their profits and are currently less active.

The report also highlights the increasing influence of individual investors. Investors holding less than 10 BTC, known as Shrimp-Crab, withdrew 25,600 BTC from the market in the last month. This is equivalent to 1.9 times the 13,600 BTC produced by miners during the same period. The impact of these individual investors on supply is helping the market to establish a stronger balance at current levels.

Glassnode states that these dynamics can have positive effects on the price of Bitcoin and indicate that the market is settling on a more sustainable ground. With the change in investor behavior, it is observed that Bitcoin has found strong support at current levels. However, the market may need to aim for new targets to trigger new supply waves and reach higher price levels.