Bitcoin News Today: Bitcoin's "OG" Coins Awaken: A Bull Cycle in Its Final Act

Bitcoin long-term holders (LTHs) have realized approximately 3.27 million BTC in profits since the start of 2024, a figure that has surpassed the 2021 bull cycle and is second only to the 2017 peak of 3.93 million BTC. According to on-chain analytics platform Glassnode, this suggests the market may be entering the late phase of the current bull cycle, marked by increased sell-side pressure and capital rotation [1]. The data highlights a significant uptick in profit-taking activity, particularly among investors who have held Bitcoin for over 155 days—classified as LTHs. These investors are increasingly converting their gains into liquidity, with recent activity indicating heightened market turnover [2].

The increase in realized profits has been accompanied by a notable rise in the supply of Bitcoin available for sale. Approximately 100,000 BTC has recently become active on the market, with 80,000 BTC listed for sale at Galaxy, and an additional 26,000 BTC entering circulation. Much of this supply comes from dormant or "OG" coins, indicating that even long-held assets are now being liquidated. The increased liquidity, supported by recent ETF approvals and broader market participation, has helped absorb the large volume of realized profits without triggering a more severe price correction [1].

The maturing Bitcoin market is further evidenced by the divergence in behavior between long-term and short-term holders. While LTHs continue to realize gains, data from on-chain analyst Darkfost reveals that short-term holders are increasingly unprofitable. The Bitcoin Short-Term Holder Spent Output Profit Ratio (SOPR) has recently fallen below the neutral level of 1, suggesting that short-term investors are either breaking even or experiencing losses. This dynamic reflects broader investor caution and a potential shift in market sentiment, with short-term holders showing signs of distress while long-term holders remain confident in their positions [2].

Historical context underscores the significance of the current cycle. In 2017, Bitcoin’s average price was around $1,000, whereas the current price is approximately 100 times higher, illustrating that the volume of realized profits has occurred in a much larger market environment. The increased dollar value of these profits highlights the growing institutional and retail participation in Bitcoin, as well as the evolving nature of capital flows within the crypto ecosystem [1].

Market analysts suggest that the interplay of rising realized profits, increased liquidity, and divergent holder behaviors is a key indicator of cyclical market dynamics. Elevated sell-side activity often signals a transition phase, where capital rotates from long-term accumulation into short-term trading or cash. While this can create temporary volatility, the market’s ability to absorb large volumes of Bitcoin without a significant price drop indicates a more resilient and mature structure. This resilience is further supported by the ongoing expansion of trading volumes and the broader adoption of Bitcoin-based financial products [1][2].

Source:

[1] BTC Long-Term Holders Realize 3.27M BTC in Profits (https://www.coindesk.com/markets/2025/08/27/bitcoin-long-term-holders-have-realized-profits-of-3-27m-btc-this-cycle-exceeding-2021-cycle)

[2] Bitcoin Long-Term Holders' Realized Profits Surpass Past (https://bitcoinist.com/bitcoin-lths-realized-profits/)