Glassnode reports that realized profits for both short-term and long-term Bitcoin holders remain below previous all-time highs (ATH). This suggests that many investors are likely waiting for higher prices before selling.

#Bitcoin’s rally to a new ATH is driven by strong spot demand and institutional inflows, with over 95% of supply in profit. This article explores on-chain indicators, highlighting robust spot buying momentum, rising ETF AUM, futures premiums, and the potential for sustained gains… pic.twitter.com/N8gJENt5kL
— glassnode (@glassnode) November 12, 2024

Glassnode analysts highlighted that Bitcoin’s realized market cap increased by 13.3% leading up to the U.S. elections and by an additional 2% after. In terms of price, these changes correspond to gains of 10.1% and 27.9%, respectively, indicating a more tempered market reaction compared to previous cycles.

Over the past week, Bitcoin’s price surged by $11,600, exceeding the upper statistical range (one standard deviation) fivefold. This demonstrates “unprecedented bullish strength” driven by expectations of regulatory changes.

“While profit-taking is significant, it remains below historical peaks, suggesting room for further growth until potential demand exhaustion,” the report noted.

Inflows into BTC-ETFs and Futures Growth

Glassnode also observed strong buyer activity on Coinbase and inflows of $6.8 billion into BTC-ETFs over the past 30 days. Additionally, the open interest in Bitcoin futures on CME rose by $4.8 billion in the same period, reflecting a preference for spot trading via exchange-traded funds.

Daily realized profits totaled approximately $1.56 billion, with 46% ($720 million) attributed to long-term holders (HODLers). This is about half the realized profit level seen during previous cyclical ATHs ($3 billion), where more than 50% of profits were from long-term investors.

Potential for Further Growth

“If demand persists, there is room for continued price growth. Stronger selling pressure will be required before prices reach typical profit-taking levels,” Glassnode concluded.

Previously, analysts at Copper outlined a timeframe for Bitcoin’s next peak. Additionally, Bernstein recommended investing in cryptocurrencies as soon as possible, suggesting a portfolio that includes BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.