Amidst a resurgence in Bitcoin (BTC) price and realized capitalization, long-term holders have initiated a trend of selling their assets to a wave of new investors, catalyzing a fresh surge in the cryptocurrency's value.

As outlined in an April 2 analysis report from Glassnode, Bitcoin's recent ascent to new all-time highs has enticed holders who have enjoyed substantial profits to redistribute their holdings to a burgeoning cohort of newcomers entering the market.

Glassnode utilizes the Realized Cap metric, a tool that records the transaction price for each Bitcoin to ascertain the proportion of holders realizing profits or losses. This metric has soared to an unprecedented all-time high (ATH), signifying a significant milestone in the market, according to Glassnode's analysis.

The mechanism behind this phenomenon is vividly illustrated by the Realized Cap statistic, which monitors the total USD liquidity 'stored' in the asset or asset class. Currently, the Realized Cap has surged to a new ATH value of $540 billion, experiencing an extraordinary monthly growth rate exceeding $79 billion.

According to Glassnode's findings, approximately 44% of all BTC in circulation is now held by addresses that have been active for less than three months, a figure that historically indicates the mid-stage of bull markets.

The report highlights a discernible shift in investor behavior, with Long-Term Holders engaging in profit realization strategies and reactivating dormant supply to meet the surging demand at elevated price levels.

Glassnode researcher Checkmatey notes that the realized cap is on the rise as aging coins are reassessed at higher valuations, with Grayscale Bitcoin Trust (GBTC) accounting for around 30% of this activity, while remaining HODLers sell the remaining portion.

However, the analysis was conducted against the backdrop of Bitcoin approaching its all-time high for the second time, with market corrections becoming evident earlier this week. Bitcoin briefly touched $73,734 on March 14 before experiencing a downturn of approximately 17%, eventually stabilizing around $71,550 on March 28. Nonetheless, resistance proved formidable, leading to a decline below $65,000 during Wednesday's Asian trading session, hitting $64,573 before bouncing back to $66,111 at the time of this writing, according to CoinMarketCap data. Currently, Bitcoin is down 10% from its all-time high.

While the overall cryptocurrency market capitalization has dipped by 1% to $2.5 trillion, it remains approximately 20% lower than its record peak recorded in November 2021.

Despite sporadic hype around certain meme coins, altcoins have largely remained stagnant in this market cycle, with most experiencing declines today, including XRP, down 2.3% to $0.576, and Dogecoin, down 2.7% to $0.180.