Bitcoin holders are tightening their grip on their coins, with Glassnode reporting Tuesday that the majority of investors now sit on unrealized profits after BTC’s rebound to $107,000.
Key Takeaways:
- Most Bitcoin investors are sitting on unrealized gains averaging 125%, with few rushing to sell.
- Bitcoin’s support around $98,300 signals strong confidence among short-term holders.
- Analysts warn long-term holder selling could cap BTC’s momentum despite bullish sentiment.
The blockchain analytics firm noted that Bitcoin has found solid support around $98,300, the average price paid by short-term holders, those who bought within the past 155 days, a level proving key in the current consolidation phase.
According to Glassnode, total unrealized profits among Bitcoin holders have climbed to $1.2 trillion, closing in on the all-time high of $1.3 trillion set late last year.
Bitcoin Investors Up 125% on Average
The average investor is sitting on a paper gain of 125%. Yet despite these significant profits, selling activity has slowed dramatically, with investors preferring to HODL rather than cash out at current price levels.
“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,” Glassnode said in its report.
Metrics such as realized profits and new highs in long-term holder supply further indicate that holders are content to wait for higher prices.
The analytics firm highlighted that after a burst of selling around Bitcoin’s May all-time high, short-term holders have backed off, signaling they believe the market has room to move higher.
Glassnode concluded that a price shift, either above current highs or significantly lower, may be necessary to unlock more supply.
At press time, Bitcoin is trading around $106,170, just 5.5% below its record of $111,970 reached on May 22.
The strong monthly close in June above $107,000 has fueled expectations for another leg up.
Still, some analysts caution that selling by long-term holders could be capping Bitcoin’s momentum.
Charles Edwards of Capriole Investments said persistent unloading by these investors since January’s spot ETF launches has weighed on the price, keeping BTC stuck near the $100,000 level despite strong institutional interest.
Bitcoin Rally Stalls as Profit-Taking Rises
As reported, Bitfinex strategists have said that Bitcoin’s surge from $73,000 to over $107,000 since April appears to be stalling amid fading momentum and increased profit-taking by investors who bought under $80,000.
The analysts noted a slowdown in spot volumes and weaker buy pressure, signaling a potential consolidation phase or local top.
Bitfinex experts said Bitcoin’s next significant move will depend on macro factors, especially the Federal Reserve’s interest rate decisions, and ongoing institutional demand driven by US spot Bitcoin ETF inflows.
Those ETFs have pulled in $4.63 billion since June 9, with expectations for positive flows to continue.
Despite near-term caution, analysts stressed that Bitcoin’s higher time frame structure remains intact, with key support levels holding firm.
For one, economist Donald Dean suggested Bitcoin is primed for a breakout following tight consolidation near recent highs.
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