Long-term investors have been increasing their Bitcoin sales as the cryptocurrency’s price approaches an all-time high. According to analysts at Glassnode, the monthly sales rate of long-term investors has surged to 257,000 Bitcoin (BTC), with 57% of this coming from Grayscale’s GBTC. Sales rates for the week, month, and quarter have all seen significant increases, indicating a strong rally in the market.

As Bitcoin reached its all-time high, experts have observed a complex interplay between exchange and ETF flows, suggesting a balanced market. Additionally, long-term holders have begun to exhibit classic distribution patterns, marking a potential cycle top.

Analysts also noted a shift in capital flows to centralized platforms (CEX), with the average BTC transaction size on Coinbase spiking to 4.3 BTC at the time of spot Bitcoin ETF approvals. This is a significant increase compared to historical transaction sizes since 2019.

With Bitcoin hitting new highs, long-term investors are seeing unrealized gains of up to 228%. Historically, this group tends to increase spending as new all-time highs are reached, contributing to the formation of a cycle top.

IntoTheBlock experts highlight that all Bitcoin holders were in profit during the recent ATH update, with no wallets at a loss or break-even. Whale activity has also been high, with transactions of $100,000 or more totaling $174.2 billion in the past week.

The surge in demand for Bitcoin and its sharp price rise can be attributed to significant capital inflows into U.S. spot Bitcoin ETFs launched in January. The upcoming halving in April is also expected to drive further growth in the market.

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