The price of Bitcoin has dipped below $117,000, as recent on-chain data indicates that the network experienced one of its most significant profit-taking days of the year.
According to a recent post by on-chain analytics firm Glassnode on social media platform X, the Bitcoin Realized Profit indicator has shown notable trends among both short-term holders (STHs) and long-term holders (LTHs). The "Realized Profit" metric reflects the total profits investors are realizing from their transactions, calculated by analyzing the historical transfer prices of each Bitcoin sold.
The profit or loss from a sale is determined by comparing the previous price at which the Bitcoin was held to the current selling price. When the difference is positive, it results in a realized gain. This metric aggregates all such transactions occurring on the blockchain. In contrast, another indicator, the Realized Loss, monitors sales resulting in losses. Currently, the focus is on the realized profits from STHs, who have held their coins for 155 days or less, and LTHs, who have held for a longer duration.
Glassnode shared a chart illustrating the trends in Realized Profit for both segments of the Bitcoin market. The graph shows that both STHs and LTHs experienced spikes in realized profits over the past 24 hours, indicating that investors capitalized on the recent rally that pushed Bitcoin to an all-time high (ATH) exceeding $123,000. In total, holders realized profits amounting to $3.5 billion during this period, marking it as one of the largest profit-taking events of the year.
Interestingly, LTHs accounted for a larger share of the profit realization, totaling $1.96 billion (56%), compared to STHs, who realized $1.54 billion (44%). Typically, longer-held investments are less likely to be sold, positioning LTHs as the more steadfast participants in the market. However, the recent surge in Bitcoin's price appears to have tempted even these long-term holders to sell.
As a result of this selloff, Bitcoin's price has fallen to approximately $116,700, reflecting an increase of over 7% in the past week. The asset's value has experienced a notable decline in the last 24 hours.
