Long-term Bitcoin holders are currently enjoying profits from the cryptocurrency’s recent record high in March. However, the report by Glassnode Insights shows this trend is slowing down. 

The report indicates that after reaching all-time high prices, long-term holders typically tend to profit-take in the short term. However, recently, this trend seems to be easing off slightly in the latest price movements.

As the market enters its early stages of euphoria or price discovery, the interaction between long-term holders and new demand becomes crucial for Bitcoin’s trajectory. However, historical patterns reveal that such euphoria phases often experience significant price corrections, with drawdowns exceeding 10%, and many even deeper, surpassing 25%.

Recent data indicates only two significant price corrections of around 10% since the March all-time high. Analysts are closely observing the upcoming Bitcoin Halving event, a driver of market speculation. According to VeChain Founder Sunny Lu, regulatory developments will heavily influence Bitcoin’s trajectory post-halving.

Lu highlights a notable shift in focus from traditional supply dynamics toward broader macroeconomic factors. He emphasizes the evolving influence of regulation, pointing out price moments triggered by regulatory progress following the previous halving in May 2020.

Bitcoin experienced three price peaks after its halving, each coinciding with significant regulatory events: The Coinbase IPO in April 2021, the approval of bitcoin futures ETFs in November 2021, and the approval of spot bitcoin ETFs in March of this year.

Also read: Halving simplified: Here’s everything you need to know about Bitcoin Halving 2024