Bitcoin investors currently hold approximately $1.2 trillion in unrealized profits, according to the crypto on-chain data analysis platform glassnode.
This significant figure highlights the profits accumulated by long-term holders as Bitcoin continues to trade near its all-time high.
Bitcoin Investors Moving from Traders to Long-Term Institutional Investors
According to glassnode data, the average unrealized profit per investor is around 125%, lower than the 180% when BTC price reached $73,000 in March 2024.
However, despite these substantial unrealized profits, investor behavior suggests no urgent movement to sell major cryptocurrencies. BeInCrypto previously reported that daily realized profits are only around $872 million.
This is in contrast to previous price surges, where realized profits spiked between $2.8 billion and $3.2 billion at BTC price points of $73,000 and $107,000, respectively.
Current market sentiment suggests investors are waiting for more decisive price movements. There is a firm belief among long-term holders, with accumulation continuing to outweigh selling pressure.
"This emphasizes that HODLing remains the dominant market behavior among investors, with accumulation and maturation flows significantly outpacing distribution pressure." – glassnode
Meanwhile, Bitcoin analyst Rezo mentioned that the current trend reflects a fundamental change in the profile of Bitcoin holders. According to him, the typical BTC holder has evolved from short-term speculative traders to long-term institutional investors and allocators.
Rezo pointed to the increasing influence of institutional players like ETFs and public companies such as Strategy (formerly MicroStrategy).
"The holder base has changed – from traders looking for an exit to allocators looking for exposure. MicroStrategy holds billions in unrealized profits and continues to add. ETFs = persistent bidding, not swing traders." – Rezo
Notably, public companies like Strategy increased their Bitcoin holdings by 18% in the second quarter, while ETF Bitcoin exposure increased by 8% during the same period.
Considering this, Rezo concluded that most short-term sellers have likely already been flushed out between $70,000 and $100,000. He added that investors treating Bitcoin as a strategic long-term allocation rather than a speculative trade remain.
