Recent cryptocurrency data reveals that long-term Bitcoin investors secured significant profits coinciding with the latest market downturn.
Large Bitcoin Holders Realize Profits Amid Market Dip
Crypto analyst Ali Martinez noted on social media platform X that Bitcoin “whale” investors, those holding for over 155 days, have recently engaged in profit-taking. These long-term holders (LTHs) are generally known for their resistance to selling, even during volatile market conditions.
However, these long-term investors occasionally do sell, and a recent instance appears to have occurred.
This analysis focuses not on smaller LTHs, but rather the LTH whales – substantial holders with balances exceeding 1,000 BTC, currently valued around $113.7 million.
The following chart, shared by Martinez, illustrates the Bitcoin Realized Profit trend for LTH whales over the past several weeks.
Realized Profit, in this context, is an on-chain metric tracking the total profit secured by these large Bitcoin holders through their transactions. The chart reveals a significant spike on September 21st.
Notably, September 21st marks the beginning of a BTC price decline, pushing the asset toward the $112,000 mark. This suggests that profit-taking by these long-term holders may have contributed to the observed downward price pressure.
Collectively, these LTH whales realized profits exceeding $120 million during this selling period. Conversely, short-term holders (STHs), defined as investors who entered the market within the last five months, experienced losses. This was highlighted in a social media post by CryptoQuant analyst Maartunn.
The chart above indicates that Bitcoin STHs transferred 15,700 BTC to exchanges at a loss during the price drop. As exchanges are typically used for selling, these transactions suggest capitulation among short-term investors.
Given their shorter holding periods, STHs are generally considered the “weak hands” of the Bitcoin market. This recent instance of capitulation aligns with that characterization.
Returning to LTH activity, on-chain analysis firm Glassnode has presented a chart offering perspective on the total profit realized by all LTHs during the current market cycle.
The cumulative Bitcoin LTH Realized Profit for this bull market is 3.4 million BTC, surpassing all but one previous market cycle.
BTC Price
Bitcoin has partially recovered over the last 24 hours, currently trading around $113,700.