Glassnode Founders: Bitcoin Profit-Taking Decreases and Two Factors Predict Rally

The co-founders of the blockchain analysis platform Glassnode, Jan Happel and Yann Alleman, who also founded Swissblock and share the social media account Negentropic, recently shared their insights on the current state of the Bitcoin market. They emphasize that profit-taking among Bitcoin holders has decreased, which could lead to a new rally.

Decreasing Profit Taking and Future Catalysts

Net realized profit/loss is a metric that indicates whether Bitcoin sales result in profit or loss for holders. Happel and Alleman note that this metric shows that profit-taking has decreased since the peaks in November and December.

They also predict that the Bitcoin price could rise before pro-crypto US president-elect Donald Trump takes office on January 20. This is attributed to investors rebalancing their portfolios at the beginning of the year and the reopening of markets after the holidays. They continued with:

“Profit-taking is decreasing as BTC stabilizes at $94,000- $95,000, making the zone less attractive to investors. New liquidity and participants are essential for upward momentum. The reopening of the market and portfolio shifts could soon lead to action, possibly before Trump’s inauguration day.”

Altcoins Get Room to Grow

The Bitcoin Dominance (BTC.D) chart, which measures Bitcoin’s share of the total crypto market capitalization, remains below a recent high of 61%. At the moment, dominance is at 57.6%, suggesting that altcoins could gain ground.

The analysts also note that Ethereum (ETH) appears to have found a bottom against Bitcoin (BTC). This could mean that altcoins, particularly Ethereum, are about to recover. They indicated the following:

“An altcoin rebound on the horizon? ETH/BTC starts the week with strong momentum, while BTC dominance struggles to maintain its bullish trend on the weekly chart. Bitcoin’s dominance is losing strength and ETH/BTC has printed a higher bottom, possibly indicating a bottom. Is it time for altcoins to shine, at least for a while?”

These observations from Happel and Alleman offer a hopeful perspective for Bitcoin and altcoins at the beginning of 2025, suggesting that the market could be ready for a new phase of growth and diversification.