Bitcoin Holders HODL Despite 125% Unrealized Gains

Bitcoin investors are holding onto their coins despite significant unrealized profits, as the cryptocurrency finds strong support at around $98,300. According to Glassnode, the majority of Bitcoin holders are currently sitting on unrealized gains averaging 125%, yet there has been a notable slowdown in selling activity. This behavior indicates a strong preference for holding (HODLing) rather than cashing out at current price levels.

Glassnode's analysis highlights that Bitcoin has established solid support around $98,300, which is the average price paid by short-term holders—those who bought within the past 155 days. This level has proven crucial during the current consolidation phase, suggesting that investors believe the market has room to move higher. The total unrealized profits among Bitcoin holders have climbed to $1.2 trillion, nearing the all-time high of $1.3 trillion set late last year.

Metrics such as realized profits and new highs in long-term holder supply further support the notion that holders are content to wait for higher prices. After a burst of selling around Bitcoin’s May all-time high, short-term holders have backed off, signaling their confidence in the market's potential for further growth. Glassnode concluded that a significant price shift, either above current highs or significantly lower, may be necessary to unlock more supply.

At the time of reporting, Bitcoin is trading around $106,170, just 5.5% below its record of $111,970 reached on May 22. The strong monthly close in June above $107,000 has fueled expectations for another leg up. However, some analysts caution that selling by long-term holders could be capping Bitcoin’s momentum. Charles Edwards of Capriole Investments noted that persistent unloading by these investors since January’s spot ETF launches has weighed on the price, keeping BTC stuck near the $100,000 level despite strong institutional interest.

Bitcoin’s surge from $73,000 to over $107,000 since April appears to be stalling amid fading momentum and increased profit-taking by investors who bought under $80,000. Analysts noted a slowdown in spot volumes and weaker buy pressure, signaling a potential consolidation phase or local top. Bitfinex experts said Bitcoin’s next significant move will depend on macro factors, especially the Federal Reserve’s interest rate decisions, and ongoing institutional demand driven by US spot Bitcoin ETF inflows. Those ETFs have pulled in $4.63 billion since June 9, with expectations for positive flows to continue.

Despite near-term caution, analysts stressed that Bitcoin’s higher time frame structure remains intact, with key support levels holding firm. Economist Donald Dean suggested Bitcoin is primed for a breakout following tight consolidation near recent highs. The next target is at the Golden Ratio $130k.