Recent data from Glassnode shows that recent buyers, who’ve held their assets for twenty-four hours to a few months, now own 50% of the market’s value.
This figure tells a crucial story in regards to the current state of the crypto market, especially as Bitcoin fluctuates around $100,000. The highest cryptocurrency experienced big price changes, going up over $105,000 on Sunday, dropping below $98,000 on Monday, after which increasing by 2.04% on Tuesday.
Recent Whales Make Waves In The Cryptocurrency Ocean
Since mid-2024, the entry of recent Bitcoin whales (see CryptoQuant graph below) has significantly modified the market landscape. These heavyweight investors, defined as entities which have held greater than 1,000 BTC for lower than 155 days, have increased their market share from 17% in July 2024 to 60%.
This increase in whale accumulation, which occurred while Bitcoin was trading at $55,000, demonstrates strong institutional confidence despite market volatility.
At 50.2%, the proportion of wealth held by recent #Bitcoin investors (24H to three months), continues to be well below the degrees seen during previous ATH cycle tops:
🔺2018 peak: 85%
🔺2021 peak: 74%https://t.co/hkTSpFVAPG pic.twitter.com/6gcOgIIlvM— glassnode (@glassnode) January 28, 2025
Historical Patterns Indicate Potential Upside
Previous market cycle evaluation shows that we still have a protracted solution to go till peak euphoria. Recent investors owned a far larger share of market wealth within the 2018 and 2021 market peaks—85% and 74% respectively.
Today’s more modest 50.2% figure indicates substantial room for growth before matching historical patterns. The Realized Cap HODL Waves metric reinforces this view, suggesting current accumulation levels remain relatively conservative in comparison with previous bull markets.
Market Structure Demonstrates Surprising Resilience
Cryptocurrency experts say that Bitcoin is currently in an important trade area. The digital asset faces strong obstacles near $109,000, but it surely has solid support at $91,700.
Traders are specializing in these numbers to attempt to guess the market’s next big change. Market analysts think Bitcoin must rise by 70% to succeed in an overbought level of about $180,000, a goal that has caught the eye of each regular and massive investors.
Critical Support Levels Shape Trading Strategy
The way in which the market is ready presents an interesting duality. Bitcoin stays above vital support levels, but rejection at upper resistance bands has created a turbulent trading zone.
Technical specialist Ali Martinez emphasizes the importance of the $91,700 support level since it may well resolve the near-term price stability of Bitcoin.
#Bitcoin $BTC was rejected on the upper red pricing band at $109,400. Failing to reclaim this level shifts focus to the following critical support on the orange MVRV pricing band, currently sitting at $91,700. pic.twitter.com/h0EgU11fWO
— Ali (@ali_charts) January 28, 2025
One unique quality of current market phase is short-term volatility; Bitcoin shows significant profits and losses rapidly one after the opposite.
This unique wealth distribution pattern together with more institutional involvement point to a distinct course for the current bull market than past cycles.
In comparison with past highs, the lesser amount of wealth under control by recent investors could suggest a maturing market with higher foundations and possibly more sustainable development patterns.
The proportion between recent and experienced investors could possibly be crucial in deciding the following major movement of the market as Bitcoin keeps crossing unexplored areas.
Featured image from Pexels, chart from TradingView