Bitcoin is near its all-time high, and investors are holding onto a massive amount of potential profit. According to data analysis firm Glassnode, Bitcoin investors currently have a whopping $1.2 trillion in unrealized profits.
HODLing Strong
Despite this huge potential payout, most Bitcoin holders aren’t selling. Glassnode says “HODLing” (holding onto Bitcoin) is the dominant strategy. Several on-chain indicators support this:
- Decreased Liveliness: This metric shows Bitcoin is being held for longer periods.
- Increased Long-Term Holder Supply: More Bitcoin is being held for extended times, reaching a new all-time high.
This suggests that the current Bitcoin price isn’t tempting enough for many investors to cash out.
Potential for Selling Pressure
While HODLing is the current trend, Glassnode notes that this $1.2 trillion in unrealized profits could create selling pressure if the market changes. If Bitcoin’s price drops or investor sentiment turns negative, we could see a wave of selling.
Profits Compared to Previous Peaks
Interestingly, the current daily profit-taking is relatively low compared to previous all-time highs. Around $872 million in profits are being realized daily, significantly less than the billions seen during earlier price spikes.
The Bottom Line
Bitcoin is currently trading at around $109,422. While investors are sitting on a massive amount of unrealized gains, the current trend is to hold onto Bitcoin rather than sell. However, this could change if the market shifts. Remember, investing in cryptocurrency is risky, so always do your research before investing.