Investors have accumulated hundreds of billions of dollars in unrealized profits on Bitcoin (BTC) as the crypto king hovers just below the all-time high, according to analytics platform Glassnode.
The analytics platform says Bitcoin investors are sitting on $1.2 trillion in unrealized profits as “HODLing remains the dominant behavior.”
“Despite this surge in profitability, investor behavior signals a strong preference for HODLing, as the current price range appears insufficient to trigger significant profit-taking. This is reflected in declining realized profits, a continued downtrend in Liveliness, and Long-Term Holder supply climbing to a new all-time high.”
Liveliness is an on-chain indicator that is used to determine the holding behavior, with a decrease suggesting Bitcoin is being held for longer periods and vice versa.
The Long-Term Holder supply metric is used to categorize the total circulating supply based on how long the coins have been held – an increase in the supply suggests coins are being held for lengthy periods.
According to the analytics platform, the $1.2 trillion in unrealized profits that Bitcoin investors are sitting on could provide an “incentive for potential sell-side pressure” if sentiment shifts or if the crypto king moves out of the present price range.
“Despite this surge in profitability, investor behavior signals a strong preference for HODLing, as the current price range appears insufficient to trigger significant profit-taking.”
Compared to other recent periods when Bitcoin broke above the previous all-time high prices, Glassnode says the profits Bitcoin investors are booking are at relatively lower levels.
“Around $872 million worth of is currently being locked in profit per day, which is notably less that the $2.8 billion and $3.2 billion in realized profit seen during the $73,000 and $107,000 all-time high formations, respectively.”
Bitcoin is trading at $109,422 at time of writing.
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