Bitcoin Investors Cashing in Big
Glassnode’s report shines a light on the profitability trends among long-term Bitcoin holders. Below, we’ve summarized the highlights.
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Glassnode’s report shines a light on the profitability trends among long-term Bitcoin holders. Below, we’ve summarized the highlights.
Bitcoin’s climb to $99,000 triggered notable sell-offs from long-term investors, with over 507,000 BTC sent to exchanges. While this volume is less than the peaks of previous cycles, it still represents a significant shift.
Long-term holders realized record profits, marking a new daily profit high of $2.02 billion. Data reveals that most of the selling pressure comes from investors who purchased their BTC six months ago or earlier.
Every day, 0.27% of the total *LTH token supply is re-entering the market.
*LTH (Long Term Holder) refers to investors who hold their cryptocurrency for extended periods, typically longer than six months..
Graph: Long-Term Holder Distribution Patterns. Source: insights.glassnode
Long-term investors, according to Glassnode, are instrumental in shaping Bitcoin’s price movements, serving as the key source of liquidity now re-entering the market.
With the bullish trend advancing, it becomes crucial to examine the profit-taking patterns of this group, whose activity intensifies with increasing prices.
Stabilizing the market will depend on sustained demand, which could require a re-accumulation period to balance the oversupply.
Chart: BTC Holder Profit Distribution Metrics. Source: insights.glassnode
Analysts report that the largest portion of bearish pressure (35.3%) comes from coins purchased within the last 6 to 12 months. This relatively recent acquisition suggests cautious behavior from seasoned investors who might be waiting for more favorable price levels.
These sales are most likely attributed to swing traders, who focus on profiting from short-term price swings. Having accumulated coins after the ETF approval, they appear to be taking advantage of the first wave of price growth to lock in gains.
Chart: Distribution of Assets by Purchase Period. Source: insights.glassnode
Interestingly, the report notes that investors holding Bitcoin for over a year are offloading far fewer coins. Yet, their realized profits remain comparable to those of short-term traders.
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