On-chain data shows that long-term Bitcoin holders have been selling recently as their profits have skyrocketed to notable levels following the price surge.
Long-term Bitcoin holders have made huge profits recently
As CryptoQuant community analyst Maartunn explained in a new mail on X, long-term holders have sold big over the last month. “Long-term holders” (LTH) refer to Bitcoin investors who have held their coins for more than 155 days.
This cohort includes the most ruthless hands in the market, who rarely sell, regardless of whether a rally or decline is occurring. These investors contrast sharply with “short-term holders” (STH), who generally react to any development in the sector.
As such, one should keep an eye on when LTHs decide to sell, as it means the market is at a stage where even these diamond hands have been tempted to part with their long-held coins. .
Bitcoin is currently experiencing one such case, as the bull run to unseen highs has forced some LTHs to reap their hard-earned gains. Below is the chart shared by the analyst showing the trend in 30-day change for LTH supply.
As shown in the chart, Bitcoin LTH supply has recorded a large negative change over the last month, suggesting that these HODLers have broken their silence.
In total, diamond hands have transferred 827,783 BTC in this window. Naturally, not all transactions correspond to selling, but in general, there is a high probability that the intention is to sell every time LTHs move their coins.
The reason behind LTH’s liquidation becomes evident when considering the group’s profit and loss margin. As CryptoQuant author Axel Adler Jr noted in an mailThe group obtains an average profit of 326%.
You can see from the chart that while Bitcoin LTH gains are high on their own, they are still considerably less than the margin during the 2021 bull run.
This, of course, does not mean that the current rally also has much room left for maneuver, as it is quite possible that this cycle simply generates fewer profits for these diamond hands than last time.
While LTHs have been spending significant amounts recently, Bitcoin has not moved much, implying that there is still considerable new demand flowing into the sector that is absorbing this selling pressure. However, it remains to be seen how long this balance will hold.
BTC Price
Bitcoin had shown a brief breakout from its consolidation phase earlier in the month, but it appears that the asset has found its way back into the range as its price is now trading around $98,200.
