Long-term Bitcoin holders are realizing profits of $2.02 billion daily, a record figure that highlights the intensity of profit-taking activities when Bitcoin's price approached the $100,000 milestone earlier this month.
According to a report by Glassnode, this figure surpasses the historical high set in March of this year, "a strong demand side is needed to fully absorb this excess supply, which may require some time to fully digest."
Since September, long-term holders have sold over 507,000 BTC, with data showing that most of the Bitcoin traded by long-term holders "may have been acquired recently," suggesting they are "more likely to be 6 months old rather than an average of 5 years old."
Realized profit data shows that Bitcoin holders employ a variety of strategies. Moderate return investors profit $10.1 billion in the 0%-20% range, while high-return holders (with returns exceeding 300%) profit $10.7 billion.
These trends indicate that the amount of Bitcoin sold by participants with a lower cost basis is limited, but the profits in USD terms are quite significant. The report also emphasizes the aggressive sell-off phase, with the current LTH spending rate exceeding the historical high level of March 2024.
According to CryptoGlobe, this year's Bitcoin bull market has been accompanied by a rise in the flagship cryptocurrency's price, with on-chain activity surging, and for the first time in three years, the number of daily active addresses is now approaching 1 million.
According to data from on-chain analytics company IntoTheBlock, there has been a "significant increase" in on-chain activity as BTC prices rise, with a "decisive shift" in the long-term activity trend of Bitcoin.
It is worth adding that daily active addresses do not necessarily mean daily active users, as anyone can create any number of Bitcoin addresses, and experts often recommend using various addresses for privacy and security purposes.
This figure may not represent one million active users, but it is worth noting that many users utilize BTC within cryptocurrency exchanges, where their addresses often bundle funds from different users, ultimately representing the assets of numerous users rather than a single entity.
In addition, many people invest in cryptocurrencies and store funds in cold wallet solutions that remain unused for years, as long-term holders prefer these solutions for added security benefits.