Bitcoin Long-Term Holders See Record Profits Since 2016

Bitcoin Long-Term Holders See Record Profits Since 2016

Bitcoin long-term holders have gained more profits in the current cycle than any since 2016–17. Glassnode reports increased profit-taking and ETF outflows, with a 273-day profitability streak nearing the previous cycle record.

Bitcoin’s long-term holders have realized significant profits in the current cycle, exceeding all previous cycles since 2016–17. Glassnode, a blockchain analytics firm, indicates this milestone as a late-phase marker in the market.

Bitcoin Long-Term Holders Profiting

Bitcoin long-term holders have experienced a surge in profits this market cycle, with Glassnode reporting figures surpassing any cycle since 2016–17. Analysts suggest this aligns with typical late-cycle market behaviors. Evidence of increased profit-taking features notably.

Market Implications

Glassnode’s thorough analysis reveals long-term holders moving holdings to exchanges. This action usually corresponds to profit-taking typical of late bull market cycles, signaling a possible close to the current cycle.

“Long-term Bitcoin holders have already realized more profit in the current market cycle than in every cycle except 2016–17. The firm’s on-chain data show an uptick in coins being moved from older wallets to exchanges, a pattern typically associated with profit-taking.” — Glassnode Team, On-Chain Analytics Platform, Glassnode

Market Pressure and Institutional Demand

These movements have immediate implications for the Bitcoin market, with increased sell-side pressure noted. As spot Bitcoin ETF outflows rise, roughly $975 million was withdrawn over several days. This drop signals a decline in institutional demand.

Broader Market Conditions

The financial landscape shifts with long-term profit streaks reaching peaks, not seen since the 2016–17 cycle. This historic high highlights profitability among long-term Bitcoin holders, reflecting broader market conditions.

Forecasting Potential Outcomes

Analysts forecast potential outcomes, focusing on financial corrections and possible market shifts. Glassnode emphasizes volatility, warning of turbulence akin to historical patterns as profit-taking persists in the current cycle.

“Growing sell-side pressure is typical of late-cycle dynamics, and we warn that this phase is historically followed by increased volatility or correction as cash-outs rise.” — Glassnode Analysts, Market Analysis Team, Glassnode