Bitcoin Current Downward Trend Fails To Shake Long-Term Holder Profitability – Here’s What To Know

Even though the Bitcoin price has fallen sharply from its all-time high of $126,000, the decline still does not have that much impact on seasoned BTC investors or long-term holders. On-chain data is showing that these long-term BTC holders are still experiencing notable gains from their positions . Long-Term BTC Holders’ Profit Margins Stay Impressive With volatility heightening across the broader crypto market, Bitcoin appears to be heading for another retest of the $100,000 price ￰0￱ Bitcoin’s recent downward price action, one group remains firmly in the green zone. Specifically, the steady downward movement in the price of BTC has failed to shake long-term holders’ ￰1￱ a recent X post, Darkfost, a CryptoQuant author and market expert, highlighted that long-term holders’ profit margins are still at a significant ￰2￱ examining the Bitcoin long-term Holders Realized Profit and Loss, the expert revealed that these key investors are currently realizing an average profit of about 188%.

This tenacity highlights a well-known pattern in Bitcoin market cycles where seasoned holders typically accumulate during downturns, handle declines calmly, and frequently reap a profit during the following significant ￰3￱ the other hand, Darkfost highlighted that this figure has been dropping and could encourage long-term holders to limit their selling in the hope of acquiring better gains in the ￰4￱ metric shows that these investors’ realized price is currently sitting just above the $35,000 ￰5￱ has made a comparison between the market cycle and the past ￰6￱ contrast, data show that the realized earnings from the last two market peaks were 296% and 346%, respectively.

Currently, the market appears to be far from these levels of profitability, which suggests that the bull cycle may still have room for growth. A Selling Pressure From Short-Term BTC Holders While long-term holders’ profitability still stands firm, short-term holders are now being forced to offload their ￰7￱ reported by Darkfost, these key investors appear to have gone on a selling spree following the ongoing market ￰8￱ behavior is displayed by the recent drop in the BTC Short-Term Holder SOPR (Spent Output Profit Ratio) ￰9￱ from the metric reveals a decline below 0.995, which signals that STHs are selling at a loss, reflecting growing fear and capitulation among recent BTC ￰10￱ this action from STHs, which indicates a broadening shift in market sentiment, may appear as a negative development, there is also a positive side to these investors’ ￰11￱ noted that when short-term BTC holders start to capitulate , this is the time when good opportunities usually present ￰12￱ purpose of this preset alert is to find profitable BTC entry points, particularly for DCA tactics.

However, the expert stated that the alert is also working effectively for short-term trading without providing exit ￰13￱ the time of writing, Bitcoin’s price was hovering close to $102,000, demonstrating a nearly 2% decline in the last 24 ￰14￱ trading volume has slightly recovered, as evidenced by a more than 15% increase within the same timeframe.