Recent on-chain data indicates that experienced Bitcoin investors are realizing 89% less profit compared to the peak observed in May, even though current prices are similar. According to the on-chain analytics firm Glassnode, this trend highlights a significant shift in the Realized Profit among long-term Bitcoin holders.
The term "Realized Profit" refers to the profits Bitcoin investors realize when they sell their holdings. This metric analyzes the transfer history of each Bitcoin to assess its previous selling price. If the current selling price exceeds the earlier value, the sale contributes to profit realization. The total Realized Profit for the network is calculated by aggregating the profit from all transactions.
In this context, the focus is on Bitcoin holders who have maintained their investments for over a year without engaging in any transactions. Statistically, the longer these investors hold their tokens, the less likely they are to sell them in the future, indicating a strong commitment to their assets.
Glassnode shared a chart illustrating the trends in Realized Profit for these long-term holders over the past few months. The data reveals that there was a significant spike in Realized Profit for investors with over a year of holding in late May, coinciding with Bitcoin's surge to $110,000 after a pullback from its all-time high.
Following this profit-taking activity, Bitcoin experienced a decline. However, in recent days, the asset has regained momentum, surpassing the $109,000 mark. Notably, there has been minimal reaction from long-term holders during this rally. Presently, the 24-hour simple moving average of their Realized Profit stands at $13.6 million, which marks an 89% decrease from last month's peak of $126 million.
This behavior may suggest that seasoned investors anticipate further gains during the current Bitcoin rally, prompting them to hold their positions rather than sell.
As of the latest updates, Bitcoin is trading around $109,100, reflecting a more than 2% increase over the past week.
