Key Points
- Long-term Bitcoin holders are cashing out, realizing gains of around 326% on their investments.
- New investors, especially through Bitcoin ETFs, are crucial in absorbing the increased supply.
As the price of Bitcoin (BTC) continues to rally impressively, long-term holders are capitalizing on the opportunity to cash out. They are realizing gains of roughly 326% on their investments, with an average entry price of $23.4K.
This increase in profit-taking has led to added selling pressure in the market. However, BTC has shown a remarkable ability to absorb the increased supply.
Reasons for Selling and New Investor Involvement
The question arises as to why these long-term holders are choosing to sell now. Additionally, how are new investors contributing to maintaining the market’s upward momentum?
A significant role in absorbing the increased supply is played by new investors, particularly those investing via Bitcoin ETFs.
