Bitcoin Investors Hold $1.2 Trillion Unrealized Profits Despite Price Near All-Time High

Bitcoin investors are currently holding onto a substantial amount of unrealized profits, totaling $1.2 trillion, as the cryptocurrency hovers just below its all-time high. This information comes from the analytics platform Glassnode, which highlights that the dominant behavior among investors is "HODLing," or holding onto their assets rather than selling. Despite the significant profitability, investors appear to be reluctant to sell, as the current price range does not seem to be sufficient to trigger substantial profit-taking. This is evidenced by a decline in realized profits, a continued downtrend in the Liveliness indicator, and an increase in the Long-Term Holder supply to a new all-time high. Liveliness is an on-chain metric that measures holding behavior, with a decrease indicating that Bitcoin is being held for longer periods. The Long-Term Holder supply metric categorizes the total circulating supply based on how long the coins have been held, with an increase suggesting that coins are being held for extended periods.

The $1.2 trillion in unrealized profits could potentially create sell-side pressure if investor sentiment shifts or if Bitcoin moves out of its current price range. However, compared to previous periods when Bitcoin broke above its previous all-time high prices, the profits being booked by investors are at relatively lower levels. Currently, around $872 million worth of profit is being locked in per day, which is notably less than the $2.8 billion and $3.2 billion in realized profit seen during the $73,000 and $107,000 all-time high formations, respectively. This suggests that while investors are sitting on significant profits, they are not as eager to sell as they were during previous bull runs. The current price of Bitcoin is $109,422.

This behavior indicates a strong preference for holding onto Bitcoin rather than selling, despite the substantial profits. The analytics platform suggests that the current price range is insufficient to trigger significant profit-taking, as evidenced by the declining realized profits and the continued downtrend in Liveliness. The increase in Long-Term Holder supply to a new all-time high further supports this trend, indicating that investors are holding onto their Bitcoin for longer periods. This behavior could potentially create sell-side pressure if investor sentiment shifts or if Bitcoin moves out of its current price range. However, the relatively lower levels of profits being booked compared to previous periods suggest that investors are more cautious this time around. The current price of Bitcoin is $109,422, and investors are locking in around $872 million worth of profit per day, which is notably less than the $2.8 billion and $3.2 billion in realized profit seen during the $73,000 and $107,000 all-time high formations, respectively. This suggests that while investors are sitting on significant profits, they are not as eager to sell as they were during previous bull runs.