Glassnode's New Investor Behavior Tool Reveals Who's Driving Bitcoin Price Moves

Blockchain analytics platform Glassnode has unveiled a powerful new visualization that sheds light on investor behavior across Bitcoin (BTC), Ethereum (ETH), and ERC-20 tokens.

Glassnode, the renowned blockchain analytics firm, has unveiled a unique visualization tool that provides deep insights into investor behavior across Bitcoin (BTC), Ethereum (ETH), and ERC-20 tokens.

The tool, which delves into spending patterns to identify different investor groups, is designed to help users decipher who is driving price action. This knowledge is crucial for navigating crypto market cycles effectively.

As highlighted by Glassnode, determining whether a price move is being driven by long-term holders or short-term speculators provides critical context for interpreting potential reversals, continuations, or blow-offs. The visual tool allows market participants to observe the dominance of different investor types in real time.

A visualization by Glassnode breaks down different investor groups and their varying levels of influence on crypto prices.

The visualization categorizes investor behavior into several groups, including:

* Long-term holders (LTHs) are defined as entities that have held their coins for more than 155 days.

* Short-term holders (STHs) are those who have held their coins for less than 155 days.

* Conviction buyers are entities that buy coins at a loss and continue holding, gradually shifting the market cap in favor of buyers.

* Loss sellers are entities who sell their coins at a loss, usually due to unrealized losses or a change in investment strategy.

* Profit sellers are entities who sell their coins at a profit, indicating periods of strong price rallies.

Data shows that during bear markets, conviction buyers and long-term holders (often shown in green on the chart) typically increase their share of supply—signaling accumulation phases. Conversely, short-term actors like loss sellers and profit sellers are more dominant during price peaks and periods of volatility.

This segmentation provides a clear window into market psychology, giving traders and analysts a more accurate view of who is selling or accumulating at any given moment.

Although this feature was demonstrated using Bitcoin, Glassnode confirmed that it is also available for Ethereum and major ERC-20 tokens. This application extends the tool’s relevance across a broader spectrum of assets and investor types.

In an era where markets are becoming increasingly data-driven, this type of behavioral analysis offers investors a strategic edge—especially in anticipating key inflection points in price.

Glassnode’s innovation bridges technical price charts with human behavior, providing a more nuanced view of what’s happening under the surface. As crypto matures, tools like these are poised to become indispensable for institutional and retail investors alike.