The recent price rally has ignited a flurry of activity among investors, with long-term Bitcoin (BTC) holders having $2 billion in unrealized profits.
According to an analysis by on-chain analytics platform Glassnode, the total realized profits made by BTC holders on Nov. 22 was $443 million, demonstrating the extent of profit-taking during the coin’s spike to almost $100,000.
However, some seasoned investors held onto their BTC stash in anticipation of more price gains.
Bitcoin Holders and Selling Pressure
Glassnode’s breakdown of the realized profits revealed that 35.3% of all sell activities were from wallets holding BTC for six to twelve months. This trend suggests that investors who purchased BTC during the previous market bottom chose to reduce their exposure rather than holding onto their stash in anticipation of future price appreciation.
Conversely, long-term Bitcoin holders didn’t see the need to sell their BTC stash. Furthermore, the behavior of short-term investors highlights how susceptible they are to BTC’s price changes. Their stance will balance any effect of the speculative traders’ sell activities on BTC’s price.
Spotlight on ETFs and Corporate Bitcoin Holders
Bitcoin holders’ landscape coincided with notable changes in corporate treasuries and exchange-traded funds (ETFs) for the leading crypto asset. According to SoSoValue data, US spot Bitcoin ETFs have recorded over $551 million in outflows over the past two days.
This pattern implies that institutional investors react quickly to BTC’s price changes, including its short-term market dynamics. Coincidentally, the decline in BTC’s value affected BTC-related stocks, especially MicroStrategy.
The company’s stock, which has the biggest Bitcoin treasury among publicly traded companies, fell 35% in four days. Despite market conditions, the firm is still committed to increasing its Bitcoin holdings in the long run.
The recent spike in BTC’s price has exposed investors’ divergent approaches. Experienced players show resiliency and await even higher returns, while mid-term holders choose to take advantage of gains.
These factors, along with the responses of ETF players, reflect holders’ choices between long-term confidence and short-term outlook. Current CoinMarketCap data shows that BTC trades at $93,238, up 1.47% in the last 24 hours.
BTC Price Chart. | Source: CoinMarketCap