In this issue of Coin Metrics State of the Network, we explore how shifts in Bitcoin holder behavior and key drivers of demand are influencing sentiment and defining the rhythm of this cycle. By analyzing shifts in active supply, and avenues of demand, we look into whether recent movements reflect end-of-cycle profit-taking, or a more structural transition of Bitcoin’s ownership base.
Key Takeaways:
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Bitcoin’s supply is turning over more gradually as long-term holders distribute in waves and new participants absorb supply, showing a more measured transition of ownership.
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Spot Bitcoin ETFs and Strategy alone have absorbed nearly 90% of the rise in short-term holder supply since early 2024, and now account for 23% of all BTC active within the past year.
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Realized volatility continues to stabilize, pointing to a more mature market structure defined by institutional demand and elongated cycle rhythms.
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