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Bitcoin long-term holders locked in over $2 billion in profit in one day — but not everyone is interested in selling BTC.
In the latest edition of its weekly newsletter, “<a data-ct-non-breakable="null" href="https://insights.glassnode.com/the-week-onchain-week-48-2024/" rel="null" target="null" text="null" title="null">The Week Onchain</a>,” analytics firm Glassnode revealed a split between Bitcoin’s “diamond hands.”
<h2 id="bitcoin-lths-potentially-waiting-for-higher-prices">Bitcoin LTHs “potentially waiting for higher prices”</h2>
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) investors saw unrealized profits soar across the board during the recent BTC price surge to almost $100,000.&nbsp;
While speculators have fallen victim to various liquidation events, old hands have begun taking risks off the table by cashing in long-held coins. As <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-spoofing-btc-price-97-4-k-record-profit-taking" rel="null" target="null" text="null" title="null">Cointelegraph reported</a>, Nov. 22 saw a record $443 million of profit realized across the hodler spectrum.&nbsp;
<figure>
 <img alt="Bitcoin $2B daily profit-taking involves mostly new hodlers — Research" src="https://s3.cointelegraph.com/uploads/2024-11/01936cc0-8694-74d3-a521-590460c356e0" title="">
 <figcaption style="text-align: center;">
 Bitcoin entity-adjusted LTH realized profit (screenshot). Source: Glassnode
 </figcaption>
</figure>
While this led to concerns that selling may outpace new capital inflows, including from the United States spot Bitcoin exchange-traded funds (ETFs), Glassnode said that under the hood, the “real” Bitcoin veterans are less interested in reducing their BTC exposure.
“Having established a significant uptick in Long-Term Holder profit-taking, we can increase the granularity of this assessment by scrutinizing the composition of the supply sold,” it said.
Examining cumulative realized profit delineated by age group, researchers confirmed that profit-taking has broadly been confined to entities hodling coins between six and 12 months.
“Coins aged between 6 months and 1 year dominate the prevailing sell-side pressure, accounting for 35.3% of the total,” they reported.
<blockquote>
 “The dominance of coins aged 6m-1y highlights that the majority of spending has originated from coins acquired relatively recently, highlighting that more tenured investors are remaining measured and potentially waiting patiently for higher prices.”
</blockquote>
<figure>
 <img alt="Bitcoin $2B daily profit-taking involves mostly new hodlers — Research" src="https://s3.cointelegraph.com/uploads/2024-11/01936cc1-335f-7093-89c3-8e6c52344e77" title="">
 <figcaption style="text-align: center;">
 Bitcoin cumulative realized profit by age (screenshot). Source: Glassnode
 </figcaption>
</figure>
One theory about the identity of such investors involves institutional buyers “who accumulated after the ETFs launch and planned to ride only the next market wave higher.”
<h2 id="etf-microstrategy-investors-get-reality-check">ETF, MicroStrategy investors get reality check</h2>
The ETFs themselves show continued sensitivity to short-term BTC price fluctuations.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/who-cares-about-100k-5-things-bitcoin-this-week" rel="null" target="null" text="null" title="null">Who cares about $100K? 5 Things to know in Bitcoin this week</a>
Data shows that the past two trading days have seen combined net outflows of <a data-ct-non-breakable="null" href="https://farside.co.uk/btc/" rel="null" target="null" text="null" title="null">more than $550 million</a>.&nbsp;
<figure>
 <img alt="Bitcoin $2B daily profit-taking involves mostly new hodlers — Research" src="https://s3.cointelegraph.com/uploads/2024-11/01936cc2-4786-7c35-af9e-3a6dca15a0fd" title="">
 <figcaption style="text-align: center;">
 US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
 </figcaption>
</figure>
During that time, BTC/USD fell from near all-time highs above $99,000 to local lows of around $90,800, <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCEUR/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a> confirm.
<figure>
 <img alt="Bitcoin $2B daily profit-taking involves mostly new hodlers — Research" src="https://s3.cointelegraph.com/uploads/2024-11/01936cc3-4de5-715f-bbe5-8a758ca4f5d8" title="">
 <figcaption style="text-align: center;">
 BTC/USD 4-hour chart. Source: Cointelegraph/TradingView
 </figcaption>
</figure>
Equities buyers also felt the pinch after increasing exposure to business intelligence firm MicroStrategy, the company with the largest Bitcoin corporate treasury.&nbsp;It fell 35% from its peak on Nov. 21 in one of its worst four-day losing streaks in history, while <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-expands-bitcoin-holdings-5-4b-purchase" rel="null" target="null" text="null" title="null">still adding to its BTC reserves</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin $2B daily profit-taking involves mostly new hodlers — Research

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Cointelegraph

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