Bitcoin (BTC) Investors Have Been Realizing Hourly Profits 17% Above the Baseline: Report

A report from the on-chain analytics firm Glassnode has revealed how Bitcoin investors have recently been realizing an hourly profit 17% above the baseline.

This is a press release by Glassnode.

On-chain analytics firm Glassnode has a new report highlighting how Bitcoin investors have been seen realizing an hourly profit of 17% above the baseline, according to the latest weekly report by Glassnode.

The crypto analytics firm adds that the role of this selling pressure in the current market recovery is an interesting one to follow.

The report further delves into the recent trend in the Realized Profit of Bitcoin. This on-chain indicator measures the total amount of profit that BTC investors realize through their selling activity.

The indicator is calculated by looking at the transaction history of each coin being transferred or sold on the Bitcoin blockchain to ascertain the price at which it was previously moved. Coins sold at a price lower than the latest spot value are assumed to be resulting in profit realization, equal to the difference between the two prices.

This profit is then summed up for each token being sold at a profit to accrue the network total, which is measured by the Bitcoin Realized Profit. A similar indicator, Realized Loss, tracks the sales of the opposite type.

Here is the chart for the hourly Bitcoin Realized Profit shared by the analytics firm in the report:The above graph shows the Bitcoin Realized Profit in 7-day MA, with key levels highlighted. The levels are:

$120 million per hour (baseline value)

$139 million per hour (maximum reached on July 10th)

$250-300 million per hour (typical levels during March 2023 profit-taking spree)

$500 million per hour and above (implied by the 2021 bull market peaks)

The report further states that the Bitcoin Realized Profit has spiked recently, as the crypto showcases strength in the market.

Its recovery rally has seen investors capitalize on the opportunity, pushing the hourly profit to levels not seen since the last bull rally, which is highlighted in green in the chart.

So far, the indicator has hit a peak of $139 million per hour, which is about 17% higher than the baseline value of $120 million per hour.

While this level isn’t too high when compared to the profit-taking sprees from the last bull rally, it’s still notable, especially when considering how much lower it has been during the last couple of months.

“If the market can absorb this selling pressure without breaking down, it paints a more constructive picture on the road ahead. Conversely, failure to hold these levels, under heavy profit realization, could mark this move as another dead cat bounce, which would be consistent with prior relief rallies that faded under similar conditions,” adds the firm.

As for which side of the Bitcoin market is involved in this profit-taking event, the data suggests it’s the short-term holder cohort.

Short-term holders (STHs) are those who purchased their BTC coins within the past 155 days.

Here is a chart that shows the trend in the Spent Output Profit Ratio (SOPR), a metric that measures the ratio of Realized Profit to Realized Loss, for the STH cohort:The chart shows the 7-day MA of the STH Spent Output Profit Ratio (SOPR), highlighting a sustained move above the 1.0 mark.

The analysis firm concludes that the STH SOPR has seen a sustained move above the 1.0 mark, which signals that profit-taking is now notably outpacing loss-taking from these investors.