Bitcoin Drops Below $117K as $3.5B Profit-Taking Wave Hits

Bitcoin fell below $117,000 as on-chain statistics showed one of its biggest profit days of the year.

Bitcoin long-term holders profited most.
In a recent post on X, on-chain analytics outfit Glassnode discussed the current Bitcoin Realized Profit indicator trend for short-term and long-term holders. The “Realized Profit” measures the entire profit BTC investors make from their transactions.

For each coin being sold, the metric checks its transfer history to see its previous price. Difference between prior pricing and present selling price indicates sale profit or loss.

A positive differential means a profit for the sale. This value is added to all blockchain transactions by the Realized Profit. The Realized Loss indicator tracks opposite-type sales.

We're interested in the Realized Profit of short-term holders (STHs) and long-term holders (LTHs). Holding period divides investors into these categories. More specifically, STHs are holders who have carried their coins for 155 days or fewer, whereas LTHs have gone beyond this level.

As seen in the graph, both groups' Bitcoin Realized Profit has spiked in the previous 24 hours, indicating that investors throughout the market have profited from the surge to the new ATH over $123,000.

The holders collected $3.5 billion in gains during this window, one of the greatest of the year. LTHs made $1.96 billion (56% of profits) compared to STHs' $1.54 billion (44%).

Investors tend to sell their coins less often as they keep them longer. LTHs, with their extended holding duration, demonstrate the market's resolve.

Despite their determination, the current Bitcoin price spike may have tempted even these diamond hands. The selloff seems to have lowered prices below $117,000.

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