Recent blockchain analytics indicate that seasoned investors within the Bitcoin community capitalized on the downturn in the market.
Long-Term Bitcoin Holders Cashing In
According to a report from Glassnode, an on-chain analytics platform, significant profit realization has been observed across various Bitcoin investment cohorts. These groups are categorized based on the duration of their holdings.
The cohort holding Bitcoin for 1 to 2 years includes those who have maintained their investments without any transactions during that period.
Statistically, it is noted that as the holding period extends, the likelihood of an investor selling diminishes. Consequently, older cohorts tend to consist of more steadfast investors.
Conversely, those who have held their Bitcoin for less than six months are often labeled “short-term holders.” These individuals, due to their minimal holding duration, are typically more inclined to engage in selling activities.
Interestingly, as highlighted by Glassnode, this short-term holder group, which usually triggers profit-taking, played a minimal role in the latest market moves.
So, who were the main players in this latest profit realization? The Realized Profit by Age data provides clarity. This metric measures the total profits Bitcoin investors are unlocking through their transactions.
The Realized Profit by Age segment breaks this down by differing holding periods. Below is the chart provided by Glassnode illustrating trends for the older market participants (holding time exceeding one year).
The chart reveals a notable increase in Realized Profit among veteran holders. The 3 to 5-year group recorded the highest realized gains, amounting to $849 million.
This cohort primarily consists of individuals who acquired Bitcoin during prior market cycles. It appears that the recent surge in Bitcoin’s price, reaching $100,000, incentivized many out of their prolonged holding periods.
Furthermore, the next highest profit-takers were those who held Bitcoin for 7 to 10 years, generating $485 million in realized profit. It is often assumed that coins in this age range are lost, either forgotten or due to misplaced keys. Thus, sales from this cohort may stem from rediscovery of old wallets.
Yet, it is also plausible that some of these participants were committed HODLers who finally reaped the rewards of their sustained investment.
Following closely, the 1 to 2-year cohort also saw significant profit realization, amounting to $445 million.
Current Bitcoin Price Snapshot
As of this moment, Bitcoin is trading approximately at $109,300, reflecting an increase of over 3% within the last 24 hours.
