BTC Wealth Flows From Old Investors to New Investors

The past week has seen some interesting trends in Bitcoin’s (BTC) network activity and market dynamics. According to the report by Glassnode, Bitcoin is experiencing a wealth transfer from old investors to new investors, as well as an increase in mining difficulty and fees.

Glassnode’s report revealed that realized wealth (individual contributors) held in coins newer than three months has experienced a relative increase of close to 100%, from the low cycle of 10.3% to current value of 20.8%. This indicates that new demand is entering the market and buying Bitcoin from long-term wallets, a mechanic common in previous cycle floors. The report also noted that the latest upward Bitcoin mining difficulty adjustment has reached an all-time high as more hashrate is transferred to the network, and now requires 225 zetahash (10^21) to generate a new block. This shows that the Bitcoin network has become more secure and resistant to attacks and more profitable for miners.

The #Bitcoin realized wealth held by coins aged less than 3 months (retail participants) has experienced a near 100% relative increase from the cycle low of 10.3%, to a current value of 20.8%. This suggests the early stages of wealth transfer from experienced participants to new demand is occurring, a mechanic prevalent across prior cycle floors.

According to the report by Glassnode, Bitcoin is experiencing a wealth transfer from old investors to new investors, as well as an increase in mining difficulty and fees. Glassnode’s report revealed that realized wealth (individual contributors) held in coins newer than three months has experienced a relative increase of close to 100%, from the low cycle of 10.3% to current value of 20.8%. This indicates that new demand is entering the market and buying Bitcoin from long-term wallets, a mechanic common in previous cycle floors. The report also noted that the latest upward Bitcoin mining difficulty adjustment has reached an all-time high as more hashrate is transferred to the network, and now requires 225 zetahash (10^21) to generate a new block. This shows that the Bitcoin network has become more secure and resistant to attacks and more profitable for miners.

Finally, Glassnode’s report revealed that total withdrawals this week outpaced deposits by around 10%, revealing that the self-holding strategy remains the preferred strategy for investors in general. A similar dynamic was observed in the last big news about the stock market, which was the collapse of FTX.