Bitcoin (BTC) Short-Term Holder Realized Profit Has Shot Up Recently

In its latest weekly report, the on-chain analytics firm Glassnode has talked about how the profit-taking spree from the Bitcoin short-term holders has looked recently.

On-chain analytics firm Glassnode has launched a fresh report highlighting a significant uptick in profit-taking activity from Bitcoin short-term holders (STHs) over the past month.

Short-term holders, defined as those who bought their coins within the past 155 days, are generally viewed as a more fickle part of the market that tends to react more quickly to events. This makes them likely to engage in profit-taking as the recent rally, which has seen the asset rise to a new all-time high (ATH), progresses.

One indicator that can be useful for gauging the selling reaction to rallies from this cohort is the “Realized Profit.” This metric works by examining the transfer history of each coin being sold by STHs to determine the price at which they initially acquired it.

If this cost basis is lower than the spot price at which they are selling, then the coin’s sale is considered to be leading to the realization of some net profit, which is naturally equal to the difference between the two prices. Realized Profit sums up this value for all profit transactions to arrive at the total for STHs as a whole.

Now, in its latest weekly report, Glassnode showcased the trend in the Bitcoin STH Realized Profit over the last few months.

The STH Realized Profit has remained at elevated levels throughout the past month, as members of this cohort predictably took part in profit-taking. So far, this cohort has harvested around $11.6 billion in gains since the start of the selloff.

“For comparison, over the previous 30d period, only $1.2B of profit was realized, underscoring how drastic the rebound in new investor sentiment and spending behavior has been,” the firm noted.

While this profit-taking spree has been large, it is still lower than the highs seen in late 2024. It now remains to be seen whether the Bitcoin STH Realized Profit would expand further in the coming days and if it does, whether incoming demand will be able to handle the selling pressure.