Recent analytics reveal that the Bitcoin market’s dynamics are shifting significantly, particularly regarding HODLers capitalizing on profits. This trend showcases unique patterns emerging from previous buying cycles.
Current Trends in Bitcoin HODLing Behavior
According to a report by the on-chain data provider Glassnode, there’s a notable fluctuation in the Realized Profit among Bitcoin long-term holders (LTHs). These holders are defined as investors who have maintained their Bitcoin investments for over 155 days.
Generally, the longer assets are held, the less likely they are to be sold, marking long-term holders as pillars in the cryptocurrency landscape. However, substantial price hikes often compel LTHs—those known for their resilient holding strategies—to reconsider their positions and take profits.
Recent movements, particularly during upward price trends in 2024 and part of this year, have spurred a noticeable response from this sector. The 7-day moving average (MA) for LTH Realized Profit has shown significant activity, indicating heightened engagement from these investors.
The term “Realized Profit” quantifies the gains realized by Bitcoin investors. It is assessed by calculating the difference between an asset’s selling price and the entry price of those transacting coins. In July, the 7-day MA of LTH Realized Profit remained consistently above $1 billion daily, highlighting a historic profit-taking spree.
Interestingly, the demographic composition of recent profit-takers diverges markedly from that of the earlier November-December period. During that timeframe, profit realizations were primarily from LTHs who had held their investments for 6 to 12 months, often new entrants to the LTH classification.
Many of these profit-takers were early investors in the newly launched Bitcoin spot exchange-traded funds (ETFs), which became available in the U.S. around early 2024. Conversely, the current wave of selling involves LTHs who have held their assets for three to five years.
This segment primarily consists of investors who entered the market between 2020 and 2022, capturing the previous cycle’s growth. As observable, the recent price surge has encouraged even the most steadfast of HODLers to consider their profits.
However, the tide appears to be changing this month, as profit-taking activity from this group has noticeably slowed. It remains to be seen whether this pause indicates a complete exit from the selling phase or if further movements are on the horizon.
Current Bitcoin Market Analysis
As of now, Bitcoin is priced at approximately $119,500, marking an increase of over 4.5% in the past week. This upward momentum continues to attract attention from both seasoned investors and newcomers alike.
