Bitcoin long-term holders (those holding for over 155 days) have already made more profit this cycle than in most previous ones, according to a new report. This could signal we’re nearing the end of the current bull market.
Profit Taking: A Sign of the Times?
The report from Glassnode analyzed the cumulative profits realized by these long-term holders (LTHs). These are the “diamond hands” of the crypto world, known for their patience. While they rarely sell, eventually, even the most steadfast holders take profits. Historically, a surge in LTH profit-taking marks a late stage of a bull market cycle.
Glassnode’s chart tracks cumulative LTH realized profit, starting from when Bitcoin hit a new all-time high (ATH) in each cycle. Why the ATH? Because that’s when LTHs typically start selling. The bull run continues as long as there’s enough buyer demand to absorb their sales. When demand dries up, the cycle peaks.
The Numbers Tell a Story
The chart shows that LTHs have already realized 3.27 million BTC in profit this cycle. That’s more than in any previous cycle except 2017!
Another metric, “Percent Supply in Profit,” supports this. This metric has been above its average for an unusually long time this cycle, second only to the 2016-2018 cycle.
Is This the End?
Both these metrics suggest Bitcoin might be in the late stages of its current cycle. However, it’s important to remember that this cycle could be different. Only time will tell.
Current Bitcoin Price
At the time of writing, Bitcoin is trading around $113,400, down about 4% this week.