Bitcoin is back in action; at present, it is trading at around $109K and reaching a $2.11 trillion market cap. What is causing these big price changes? A new report from Glassnode, a top blockchain data company, gives some answers. It shows that the two main types of buyers, people who believe in crypto for the long term and new investors, act very differently in the market.
Why Strong Believers Are Important During Big Market Changes
Glassnode’s newest study looks at how people buy and spend Bitcoin, Ethereum, and ERC-20 tokens. The data shows that strong believers and new buyers have very different roles.
Conviction buyers are people who believe in crypto for the long term. They don’t panic when prices go down. Glassnode shows these buyers usually come in when the market is at its lowest and fear is strongest. During good times, they buy when prices drop a little, helping to stop big drops and keeping the market steady.
But just believing strongly is not enough to make prices go up. You also need new buyers bringing fresh money.
New Buyers Driving Prices Up
Glassnode says that to have a big price increase, you need “First-Time Buyers.” These are people buying Bitcoin or Ethereum for the first time. When many new buyers join, they add new money to the market, which often makes prices go up quickly.
For example, from July to December 2024 and again from March to May 2025, Glassnode experienced a big climb in these new buyers. Both times, Bitcoin’s price rose fast after that. This shows how strong new buying can be.
The Market Is Still Driven by Emotions
Even though charts and data help, most traders make decisions based on their feelings. Many everyday traders follow fear, excitement, or what they see on social media. However, professional traders use these emotions to make smart moves for themselves.
That’s why Glassnode made a tool called the “FOMOmeter.” It shows when traders are feeling too excited or too scared.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
