Key Takeaways:
Long-term Bitcoin holders are realizing profits while their overall supply share increases.
BTC volatility drops to its 10th percentile—lowest in over a decade.
Glassnode highlights a “unique duality” in this cycle’s market behavior.
Bitcoin price consolidates near $108,700, just below its $111,800 all-time high.
Bitcoin’s market is entering a rare phase where long-term holders are taking profits—but total long-term holdings are still rising. Combined with historically low volatility, this trend could position BTC for a fresh round of price discovery, according to onchain analytics firm Glassnode.
Long-Term Holders Are Selling—But Also Growing in Dominance
As of June 12, Bitcoin (BTC) trades at $108,756, just 3% below its all-time high of $111,800, based on Binance data. Glassnode data reveals that long-term holders (LTHs)—those who’ve held BTC for more than 155 days—are realizing significant profits, peaking at $930 million per day.
Yet, despite this selling, the total supply held by LTHs continues to increase. This divergence is historically unprecedented during a bull market’s late stages, when long-term holdings usually shrink due to widespread profit-taking.
“This duality—profit realization amid rising accumulation—is likely driven by institutional adoption and Bitcoin ETFs,” the report notes.
The realized profit/loss ratio now sits at 9.4, a level that often signals peak market euphoria and can precede local tops. However, in prior cycles, such elevated readings persisted for months if demand remained strong.
Volatility Collapse Sets Up Tight Trading Range
Despite trading near its all-time high, Bitcoin volatility has collapsed. Ecoinometrics reports that weekly BTC volatility is in the 10th percentile, lower than 90% of weeks over the past 10 years.
This contrasts with rising realized supply density—a measure showing that many recent BTC buys occurred around the $105,000–$110,000 range. Such clustering can increase the risk of sudden moves if sentiment shifts.
Meanwhile, implied volatility across Bitcoin options markets continues to fall, signaling that traders are not expecting large price swings in the near term.
"This compressed volatility regime is attractive to institutions prioritizing risk-adjusted performance," Glassnode notes.
Calm Before the Breakout?
Bitcoin appears tightly coiled between institutional demand and profit-taking pressure. With realized volatility at decade lows and long-term supply behavior signaling deeper accumulation, the market could be poised for a sharp breakout—or an abrupt correction.
If fresh demand continues to exceed sell pressure, analysts say BTC could enter a new price discovery phase. But if sentiment cracks, a swift drop could follow, especially given the dense concentration of recent buys, according to Cointelegraph.
