United

Bitcoin ETF

Bitcoin

when

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

Table of Contents

Cointelegraph

Other articles published on Nov 27, 2024

TikTok to ban teenagers from using beauty filters over mental health concerns

Bitcoin Dominance Weakens as Altcoins Prepare for a probable Market Surge

Swan Chain Launches Celestial Bloom, Expanding Swan Chain's AI Ecosystem

MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction

Kraken to Close NFT Marketplace Amid Declining Trading Volumes

Court Rules Treasury Overstepped Authority on Tornado Cash Ban

Join our free newsletter for daily crypto updates!