New data suggests that short-term holders of Bitcoin are seeing a decrease in their realized profits, indicating a possible diminishing interest in cashing out.

Bitcoin Investors Realizing Less Profits

The group of investors who recently acquired Bitcoin, known as short-term holders (STHs), has observed a decrease in their profit margins. These holders typically have a shorter investment horizon and are more prone to reacting impulsively to market movements.

During periods of high volatility, such as price surges or drops, these holders tend to sell quickly. The recent surge in Bitcoin prices towards its all-time high led to a spike in profits for STHs, reaching 42% at its peak.

However, as the cryptocurrency market has faced challenges, the realized profit indicator for STHs has dropped significantly to just 10%. This 32% decline indicates a hesitation among investors to secure profits at current levels, likely in anticipation of further price growth.

Another positive trend for Bitcoin highlighted by analysts is the increasing Realized Cap among investors holding the cryptocurrency for less than a month. The Realized Cap represents the total capital utilized by investors to purchase the asset, determined by blockchain data.

Initially declining, the Realized Cap for these new investors, including STHs, has shown signs of a revival recently, suggesting a renewed interest and demand for Bitcoin.

Bitcoin Price Update

Currently, Bitcoin is being traded at approximately $69,200, reflecting a decrease of over 1% in the past week.