Bitcoin Investor Patience Persists Amid High Profitability

New data points indicate rising patience among Bitcoin investors on the sell side, as record levels of unrealized gains suggest strong preference for holding despite the cryptocurrency trading below its May all-time high.

According to analytics firm Glassnode, Bitcoin sustained a recovery back above the $107,000 threshold, enabling a significant portion of investors to switch from potential profit-taking to holding their winnings.

“Following a recovery to $107k, a super-majority of Bitcoin investors are now holding unrealized profits.”

“Following a recovery to $107k, a super-majority of Bitcoin investors are now holding unrealized profits,” Glassnode stated in a report released Tuesday. The trend has been noted after Bitcoin found strong support around $98,300, approximately the average entry point for holders retaining Bitcoin for less than 155 days.

HODLing Dominates Investor Behavior

Glassnode highlighted that total unrealized profits within the Bitcoin market are approaching an all-time high of nearly $1.3 trillion, with the current figure around $1.2 trillion. The average investor’s position now carries a paper gain exceeding 125%.

“Despite this surge in profitability, investor behavior signals a strong preference for HODLing, as the current price range appears insufficient to trigger significant profit-taking.”

“Despite this surge in profitability, investor behavior signals a strong preference for HODLing, as the current price range appears insufficient to trigger significant profit-taking,” the firm added.

Glassnode attributes this phenomenon to declining sell pressure from short-term holders and various on-chain metrics indicating strong supply retention by long-term holders.

Chart illustrating declining sell pressure from short-term holders. — Glassnode notes a sharp drop in selling pressure from short-term holders post-ATH. Source: Glassnode

Glassnode reported a notable decline in selling activity by short-term holders subsequent to the May all-time high, suggesting the market anticipates further gains. However, it acknowledged that “the current price range is not compelling enough” to induce widespread selling.

“This again suggests… the current price range is not compelling enough for investors to continue selling… implying the market may need to move higher (or lower) to unlock additional supply,” the analysis concluded.

BTC Price Context

Bitcoin is currently trading in-line with $106,170 as of midday.

Market chart showing Bitcoin's price at USD 106,170. — Bitcoin is trading at $106,170. Source: CoinMarketCap

It is currently trading 5.5% below its May 22 all-time high of $111,970. Despite this, the cryptocurrency boasted its highest monthly closing candle close in June, exceeding $107,000.

Insights and Counterpoints

Some analysts speculate the persistent consolidation around the $100,000 mark stems from selling pressure emanating from long-term holders.

“HODLing appears to be the dominant market mechanic across a plethora of spending metrics.”

Capriole Investments founder Charles Edwards argued that long-term holders have strategically “dumped on Wall Street” and are “unloading their positions” since the debut of spot Bitcoin ETFs in early 2024, suppressing the breakout above $100,000.

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Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers are strongly advised to conduct their own research.