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Bitcoin Profit Surpasses 80%, Long-Term Holders Retain Shares

Bitcoin Holders Stand Firm as Profitable Share Rises Over 80%

The share of Bitcoin currently in profit has surpassed the 80% mark. While long-term holders are refraining from taking profits, short-term holders have chosen a different strategy.

Bitcoin Profits at High Levels

The recent price rally of Bitcoin [BTC] has resulted in 83.6% of the total circulating supply of the coin being held in profit, according to a new report by Glassnode. According to Glassnode, the currently circulating supply of BTC in profit has exceeded the historical average of 83% and is approaching the upper bandwidth of +1 standard deviation at 90%.

Market Cycle: Bear/Bull Transition Phase

Glassnode notes that the current market cycle represents a bear/bull transition phase in which the percentage of circulating BTC supply is between 50% and 90%. “The market has been in the bear/bull transition phase for the past 10 months as it recovers from the bear trend of 2022. Most of 2023 was traded below the all-time high, with the rally in October being the first sustainable upward breakout,” the report states.

A Catch to the Situation

Despite the increase in the share of BTC supply in profit, the unrealized gain is still considered “modest”. Glassnode has found that the recent increase in Bitcoin profitability has not motivated long-term holders of the coin to sell their holdings to realize profits. An evaluation of BTC’s unrealized gain showed that it remains at the all-time average of 49%.

Long-term and Short-term Holders

While long-term holders (LTH) of BTC are holding onto their coins, their share of the total circulating supply continues to increase. With 15 million BTC at the time of the press release, the LTH supply of the leading coin has consistently reached new all-time highs since November 2022. On the other hand, short-term holders (STH), who frequently take profits, have seen a decline in their coin holdings. Glassnode has found: “The supply of short-term holders has dropped to 2.3M BTC, effectively representing a new all-time low.”

Source: AMBCrypto