Long-term Bitcoin holders make record profits of $2 billion

Long-term holders of Bitcoin (BTC) recently had a party. This group of investors realized a record amount of more than $2 billion in profits in just one day. This happened amid a rise in Bitcoin’s price to nearly $100,000, according to an analysis by blockchain analytics platform Glassnode.

Short term sales versus diamond hands

While some speculators took liquidations, it was mainly Bitcoin holders who had purchased their coins between six months and a year ago who were now selling. This group represented no less than 35.3% of the total sales pressure. This suggests that recent investors are taking their profits on the current price increase, while experienced long-term holders are holding on to their BTC in anticipation of even higher prices.

Glassnode emphasizes that so-called “diamond hands” – long-term investors who tend not to sell quickly – are less likely to reduce their positions. This indicates that this group has confidence in further price increases. This behavior supports the market and shows that there may be more room for growth.

Outflows from ETFs

Institutional investors appear to be playing a major role in the recent selling pressure. Many of them may have bought Bitcoin shortly after the introduction of spot ETFs, only to sell it and take profits. Combined outflows from ETFs exceeded $550 million in two days.

MicroStrategy under fire

The recent correction has also had a major impact on MicroStrategy, known for its aggressive Bitcoin strategy. The software company’s stock fell as much as 35%, meaning a loss of $30 billion in market capitalization. This sharp decline highlights the risks of MicroStrategy’s approach, with the company often seen as a leveraged position for Bitcoin. It is striking that while BTC itself fell less sharply, MicroStrategy’s share lost four times as much value.

Conclusion

Recent developments in the crypto market show that both private and institutional players are adapting their strategies to market movements. While some are benefiting from the gains, long-term holders continue to maintain their confidence in Bitcoin’s future. This behavior provides stability and indicates that further price increases are not unthinkable.

Temporary promotion: receive €25 free at Bitvavo

To celebrate the price increase, the Dutch crypto exchange Bitvavo is offering an exclusive promotion in collaboration with Newsbit: all new customers temporarily receive €25 free when they create an account via the button below and deposit €20.

Claim your €25 free and create an account with Bitvavo

Don’t miss this opportunity to benefit directly from Bitcoin’s growing popularity!