Analysis from Glassnode reveals that Bitcoin’s long-term holders (LTHs) have secured substantial profits during the current market surge, exceeding gains from all prior cycles except one. By early 2025, these holders had realized profits from the sale of 3.27 million BTC. This surpasses the 2021 bull market and edges closer to the 3.93 million BTC profit realized during the 2017 cycle. This data points to increased selling activity and could signal that the market is nearing the end of its bullish phase, a theory supported by other indicators like decreasing transfer volumes and a shrinking Taker Buy/Sell Ratio [1].
The significant profit-taking among long-term holders has occurred alongside a rise in market liquidity and shifts in capital allocation. Roughly 100,000 BTC has become newly available for purchase, fueled by the activation of previously dormant coins and listings on significant exchanges such as Galaxy. This influx of supply has contributed to a moderate price adjustment, illustrating the market’s capacity to absorb large volumes [1]. Moreover, Exchange Traded Funds (ETFs) have facilitated these movements by expanding trading activity and supporting more fluid capital movement [1].
Bitcoin’s price has undergone considerable volatility over the past month. It momentarily peaked above $124,000 before falling below $110,000, reaching its lowest level since mid-July. This decline is attributed to a combination of factors: investors securing profits, technical resistance at certain price points, and evolving expectations regarding the macroeconomic outlook. Analysts have observed that the formation of a lower high on price charts indicates weakening upward momentum, especially after the initial optimism spurred by Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium diminished [3].
On-chain metrics also indicate the market is consolidating. The Adjusted MVRV ratio has contracted to a neutral level of 1.0, which suggests that short-term profit-taking has slowed without necessarily reversing the overall bullish trend. Concurrently, the Bitcoin Index Market Phase metric currently indicates the market is in phase 4, characteristic of a late-stage bull market. This is reinforced by a 90-day return of just 5%, signaling a pause in momentum and a period of market digestion after a rapid increase [5].
Ethereum, the second-largest cryptocurrency by market capitalization, has also experienced a correction following its all-time high of $4,954. The subsequent price drop to approximately $4,400 triggered significant liquidations as traders re-evaluated their risk exposure in response to broader economic uncertainties. Ethereum ETFs have attracted strong institutional inflows, possibly reflecting a shift in risk preference from Bitcoin toward alternative cryptocurrencies. While Ethereum’s overall market share is growing, analysts caution that elevated MVRV ratios and limited liquidity on centralized exchanges could intensify price fluctuations [8].
Despite the recent pullbacks, Bitcoin remains up by 76% since the beginning of the year, and its dominance within the cryptocurrency market remains stable. This resilience is attributed to several macroeconomic elements, including anticipated future interest rate cuts by the Federal Reserve and ongoing institutional acceptance. However, the wider market climate remains uncertain, with geopolitical and macroeconomic developments likely impacting short-term price actions [2].
Source:
[1] Bitcoin Long-Term Holders Realize 3.27M BTC in Profits (https://www.coindesk.com/markets/2025/08/27/bitcoin-long-term-holders-have-realized-profits-of-3-27m-btc-this-cycle-exceeding-2021-cycle)
[2] BTC Profit-Taking Hits Record Highs Beyond 2021 (https://cryptopotato.com/btc-profit-taking-hits-record-highs-beyond-2021-should-investors-be-concerned/)
[3] Bitcoin Slides Below $110000 as Capital Rotation Shifts to (https://www.theblock.co/post/368189/bitcoin-sinks-below-110000)
[4] From Bullish to Cooldown: Bitcoin Remains in Profit-Taking Phase as Demand Fades (https://cryptopotato.com/from-bullish-to-cooldown-bitcoin-remains-in-profit-taking-phase-as-demand-fades-cryptoquant/)
[5] Bitcoin’s Late Bull Stage: $1T Cap, Low Profit-Taking, and What’s Ahead (https://ambcrypto.com/bitcoins-late-bull-stage-1t-cap-low-profit-taking-and-whats-ahead/)
[6] Ethereum Outshines Bitcoin But Joins Broad Market Pullback (https://www.equiti.com/sc-en/news/crypto-hub/ethereum-outshines-bitcoin-but-joins-broad-market-pullback/)
[7] Bitcoin Slides to $110k as Investors’ Attention Shifts to Ethereum (https://www.xtb.com/int/market-analysis/news-and-research/bitcoin-slides-to-110k-as-investors-attention-shifts-to-ethereum)
[8] Faster Than Apple, Faster Than Bitcoin: Ethereum Hits 500 Billion (https://www.cointribune.com/en/neither-apple-nor-bitcoin-reached-500-billion-as-fast-as-ethereum/)