Long-term Bitcoin holders reported a profit of $3.5 billion within just 24 hours, attracting attention from analysts and raising concerns over potential market volatility.
Who Realized $3.5 Billion in Profits?
The profit figure of $3.5 billion was largely attributed to long-term Bitcoin holders, who accounted for nearly 56% of the total earnings. This surge in realized profits coincided with Bitcoin approaching the $123,000 mark. According to Glassnode, the Realized Profit to Loss Ratio increased from 3.0 to 3.6, indicating significant profit margins for investors.
Bitcoin Price Dips After Profit-Taking
The immediate effect saw Bitcoin's price drop from $123,000 to $117,000 following significant sell-offs, highlighting increased risks of profit-taking on the market. This event marks one of the largest single-day profit scenes this year, prompting investors to exercise caution. Glassnode’s data suggests the possibility of short to mid-term corrections looming.
Historical Data Indicates Potential Corrections
Similar profit-taking scenarios typically align with major cycle tops or local highs, often resulting in notable price corrections. Historical analysis has shown that such phases of market euphoria could precede a decrease in prices before the next consolidation phase. Glassnode's assessment warns of this potential, emphasizing increased investor activity seen.
The events surrounding profit-taking by long-term Bitcoin holders highlight current market volatility and possible future corrections. Investors are advised to remain vigilant, considering historical influences.
