Bitcoin holders aren't selling much, even though prices hit a record high of $73,800. On May 28th, blockchain analysis firm Glassnode found that the selling pressure from long-held Bitcoin is only half as strong as it was during previous market peaks. Long-term Bitcoin holders (LTHs) are choosing to keep their assets even as Bitcoin prices near $70,000.

Current Bitcoin Situation

Despite long-term holders seeing an average of 3.5 times profit, they aren't selling enough Bitcoin to make the current market trend unsustainable. In their weekly newsletter, The Week, Glassnode highlighted this issue:

“With increased buying pressure pushing prices up, the selling pressure from long-term holders becomes more important. We can measure their unrealized profits to gauge their incentive to sell and look at their actual sales to understand their selling behavior.”

Long-term holders are those who have held Bitcoin for at least 155 days, representing a less speculative segment of investors. Glassnode used market value to realized value (MVRV) data to show that these holders will soon reach historically high levels of unrealized profit:

“If the market continues to rise and new all-time highs are reached, the unrealized profits of long-term holders will grow. This could eventually lead to increased selling pressure, reducing demand over time.”

Analysts' Insights

Given the recent all-time high in March, the return of Bitcoin price discovery is a positive sign. Even at the peak price of $73,800, long-term holders weren't selling as much as they did during past market peaks. Analysts noted:

“In the last two bull markets, long-term holders sold between 836,000 and 971,000 Bitcoin per month.”

Glassnode also mentioned the ongoing sales by investors in the Grayscale Bitcoin Trust (GBTC), an institutional investment vehicle that has recently lost its top spot among spot Bitcoin ETFs. The report indicates that long-term holders have been investing more since late last year:

“After a significant amount of selling by long-term investors at the $73,000 level, the selling pressure has noticeably decreased.”

Conclusion

In summary, long-term Bitcoin holders are showing remarkable restraint by not selling their assets, even as prices reach new highs. This behavior could sustain the current market trend, though increased profits might eventually lead to more selling. For now, the reduced selling pressure suggests a stable market outlook.