Glassnode Report: Institutional Influx Boosts BTC

Glassnode’s research highlights shifts in the market, including increased daily miner rewards and consistent demand post-ETF approval.

Glassnode highlights the significant infusion of institutional funds into bitcoin (BTC) in its analysis, particularly after the approval of U.S. spot bitcoin exchange-traded funds (ETFs).

In contrast to the skepticism of detractors, this influx has increased the value of Bitcoin, which peaked at $70,000 last week—a 58% increase from its value of $42,800 before the ETF approval.

The report published by Glassnode elucidates a significant shift in the bitcoin market, marked by an increase in daily miner rewards from $22 million to $49 million, as well as modifications in exchange flows preceding and after the authorization of U.S. spot bitcoin ETFs.

Exchange transactions were inconsistent before the approval of ETFs. Nevertheless, after the authorization, a consistent demand materialized, as indicated by a daily withdrawal of $17 million, as determined by Glassnode’s research.

Concurrently, spot Bitcoin ETFs in the United States observed a daily average net inflow of $299 million. As a result, bitcoin experienced a daily net capital inflow of approximately $267 million, which provided clarity regarding the market’s ascent to unparalleled levels.

Glassnode explains, “This represents an overall, back-of-the-envelope net capital inflow into Bitcoin of approximately $267 million per day (-49+17+299).” The report further states:

This represents a meaningful phase shift in market dynamics and a valid explanation for the market’s rebound towards new [all-time highs].

Long-Term Holder Behavior: Glassnode’s Observations

Glassnode’s analysis delves deeper into the behavioral patterns exhibited by long-term holders, whose market presence has expanded in tandem with Bitcoin’s approach to record-breaking levels.

This activity is consistent with patterns identified in previous cycles, suggesting a strategic response to the market’s upward trend and potentially indicating the beginning of a new market cycle peak.

As the value of Bitcoin approaches its highest point, long-term investors, who presently possess an estimated average unrealized gain of 228 percent, have initiated a heightened volume of sales.

However, onchain analysts at Glassnode highlight that this selling phase by long-term holders has only lasted for 42 days thus far. This suggests that incoming demand may remain sufficient to offset these selling pressures for several more months, assuming historical trends are any indication.