Bitcoin investors currently hold an estimated $1.2 trillion in unrealized profits, according to the on-chain analytics platform GlassNode.
This key figure highlights the paper profits accumulated by long-term holders as Bitcoin continues to trade near record highs.
Bitcoin Investor Base will move from traders to long-term institutional allocators
GlassNode data reveals that the average unrealized profit per investor is around 125%. This is lower than the 180% seen in March 2024 when BTC prices peaked at $73,000.
But despite these massive, unrealized benefits, investors’ actions suggest that there is no major rush to sell top crypto. Beincrypto previously reported that its daily realised profits remained relatively restrained, on average at just $872 million.
This is in stark contrast to previous price surges if you notice a surge in profits of $73,000 and $107,000 respectively in the BTC price range.
Furthermore, current market sentiment suggests that investors are waiting for a more critical price movement before adjusting their upward or downward positions. This trend points to solid convictions among long-term holders, and the accumulation continues to outweigh sales pressures.
“This highlights Hadling continues to be a dominant market behaviour among investors, with the flow of accumulation and maturation significantly outweighing the pressures of distribution,” Glassnode said.
Meanwhile, Bitcoin analyst Rezo noted that the current trends reflect fundamental changes in the significantly evolved profile of Bitcoin holders. He said the typical BTC owner has moved from short-term speculative traders to long-term institutional investors and allocators.
Rezo pointed to the growing influence of institutional players such as ETFs and public companies such as Strategy (formerly MicroStrategy).
“The holder base has changed from traders looking for exits to allocators looking for exposure. Microstrategy, sitting in tens of millions with unrealized profits, will continue to add. ETFS = constant bids, not swing traders,” he said.
In particular, public companies like Strategy increased their Bitcoin holdings by 18% in the second quarter, while ETFs rose by 8% in the same period.
With this in mind, Rezo concluded that it is likely that most short-term sellers left between $70,000 and $100,000. He added that what remains are investors who treat Bitcoin less as speculative trade and as a more strategic long-term allocation.
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