Bitcoin Long-Term Holders Realize 85% Profits, Accumulate Aggressively

Bitcoin's long-term holders (LTHs) have shown remarkable resilience and bullish sentiment despite the cryptocurrency's struggle to maintain upward momentum over the past two months. Currently, Bitcoin's LTHs are realizing approximately 85% in profits, as evidenced by the Spent Output Profit Ratio (SOPR) hovering around 1.85. This profitability is further supported by the realized price of long-term holders sitting around $27,000, while their spent price is around $40,000, resulting in a positive profit/loss ratio of 3.1. This ratio indicates strong market confidence among LTHs, who have historically shown a tendency to hold onto their assets even during bear markets.

Historically, bear markets have driven Bitcoin's price below the LTHs' realized price, leading to significant capitulation. However, the current market conditions suggest that LTHs are aggressively accumulating Bitcoin, with no signs of capitulation. This behavior is exemplified by Metaplanet's recent purchase of 330 Bitcoins worth $28.2 million, bringing the company's total holdings to 4,855 BTC valued at approximately $500 million. Such massive accumulation validates the observation that long-term holders remain bullish and are not yet ready to capitulate.

The bullish sentiment among LTHs is further supported by the Long-term holders’ Coinday NVT & RVT Ratio, which have both made moderate moves to the upside. These upticks suggest that Bitcoin holders may be extending the amount of time they are holding onto their assets before selling. According to AMBCrypto’s analysis, current market conditions incentivize long-term holders to not only continue holding but also increase their holdings. As long as LTHs remain in profit and there is no capitulation from them, the market is far from a possible bear market. On the contrary, the bullish sentiments from this cohort position Bitcoin for further gains. Bitcoin has reclaimed its significant level of $87,000, signaling a possible breakout. A move north will see BTC attempt a move towards $90,000. A daily close above $87,500 will validate this bullish outlook. Conversely, a correction will see Bitcoin retrace to $84,526.