profit

Glassnode: Bitcoin wealth redistribution, long-term holders taking profits, new investors absorbing supply

ChainCatcher message: According to a recent report from Glassnode, the ongoing bull market for Bitcoin marks a significant shift of wealth from long-term holders to new investors, and the redistribution of wealth is a sign of the maturity of the Bitcoin market. Long-term holders have been realizing record profits, peaking at $2.1 billion per day, while new investors have sufficient demand to absorb this supply.According to the report, this trend indicates that the depth and diversity of the Bitcoin ecosystem are continuously expanding, thanks to increased institutional participation and heightened retail interest.In 2024, long-term Bitcoin holders (especially those holding for 6 to 12 months) have become the main contributors to selling pressure. These tokens were primarily acquired earlier this year, accounting for 38.5% of the profits realized since November, totaling $27.3 billion.Meanwhile, Bitcoin held for over three years is relatively stagnant, indicating that higher price levels may be needed to stimulate its sale.The report notes that this is a natural cycle in the Bitcoin market. As prices rise, long-term holders distribute their wealth, allowing new investors to absorb the supply.Despite significant profit-taking by long-term holders, new investors have shown resilience, providing the liquidity needed to maintain Bitcoin's upward momentum. Metrics related to short-term holders (STH) highlight their ability to withstand market adjustments without triggering a chain sell-off.Additionally, compared to previous bull markets, the volatility of the current Bitcoin cycle has also decreased. The maximum drop in August was 32%, significantly lower than the adjustment levels of previous cycles. Analysts attribute this stability to increased institutional participation, while the launch of spot Bitcoin ETFs and the widespread acceptance of digital assets have driven this trend. Besides the buying pressure from new retail investors, this institutional demand has also greatly supported the market, ensuring liquidity during sell-offs and supporting price resilience.

Lawyer: In a certain place in the country, the public security authority determined in August that a certain act of using VPN for cryptocurrency speculation was illegal, and the profits from the speculation were confiscated

ChainCatcher news, according to the disclosure from lawyer Wu Enxiang's public account, in August this year, a public security agency in a certain area of the country determined that the behavior of using VPNs to trade cryptocurrencies was illegal, and the involved individuals were administratively punished, with their profits from trading cryptocurrencies confiscated.A public security agency in a certain area discovered that a man was using a VPN to illegally connect to the internet through non-statutory channels. He contacted overseas clients who needed to purchase a certain virtual currency through a foreign website, then bought the virtual currency at a low price using a certain currency on an overseas trading app, and finally sold it at a high price, engaging in the sale of the virtual currency. After being summoned by the public security agency, the man came to accept the investigation. During the operation of the studio, he illegally profited 90,000 yuan.The administrative penalty decision stated that the man's actions constituted unauthorized use of non-statutory channels for international internet access. According to Article 6 and Article 14 of the "Interim Regulations on the Administration of International Networking of Computer Information Networks of the People's Republic of China" and Article 11, Paragraph 1 of the "Public Security Administration Punishment Law of the People's Republic of China," it has been decided to order the violator Zhang San to cease networking, issue a warning, impose a fine of 15,000 yuan, confiscate the illegal gains of 90,000 yuan, and seize eight mobile phones and eight computers used in the crime.
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