TL;DR
Bitcoin (BTC) is nearing the $100,000 milestone, prompting long-term holders (LTHs) to distribute over 507,000 BTC, realizing a record $2.02 billion in daily profits.
Most sell-side pressure comes from coins aged between six months and one year, indicating a more aggressive distribution campaign.
The market requires robust demand to absorb the supply overhang, with the Sell-Side Risk Ratio approaching high-value bands, suggesting significant profit-taking within the current range.
Bitcoin (BTC) is on the verge of reaching an unprecedented milestone of $100,000 per coin, following a series of consistent new all-time highs (ATHs). This explosive price action has significantly increased holders’ unrealized profit, prompting long-term holders (LTHs) to ramp up their distribution.
Bitcoin (BTC) Long-Term Holders Cash In
As Bitcoin’s price surged towards the $100k mark, LTHs commenced distributing over 507,000 BTC. Although this figure is less than the 934,000 BTC sold during the March rally, it remains significant. LTHs are locking in substantial profit volumes, setting a new ATH of $2.02 billion in daily realized profit.
The majority of this sell-side pressure appears to originate from coins aged between six months and one year. This indicates that the coins being sold were acquired relatively recently, highlighting a more aggressive distribution campaign compared to previous peaks.
Profit-Taking Dynamics
LTHs play a crucial role in the price discovery process, as they are a dominant source of previously dormant supply returning to liquid circulation. As the bull market progresses, LTHs tend to become more active, realizing massive profits. Currently, LTHs are realizing a record $2.02 billion in daily profits, surpassing the previous ATH set in March.
The robust demand side is required to absorb this supply overhang, which may necessitate a period of re-accumulation to fully digest. Historically, the price has stayed in a state of euphoria for several months, driven by a significant and steady influx of new demand.
Future Outlook
The Sell-Side Risk Ratio, which assesses the total volume of realized profit and loss relative to the asset size, is approaching the high-value band. This indicates significant profit-taking within the current range. However, the current reading remains lower than the terminal value reached in prior cycles, suggesting that previous bull markets have seen sufficient demand to absorb supply even under similar distribution pressures.
Supported by surging price action, LTHs meaningfully distribute coins, locking in substantial profits. This has created an overhang of supply that must be absorbed to accommodate sustained price increases. Most sell-side pressure originates from coins aged between six months and one year, underscoring the potential for further distribution from older entities.
