Bitcoin Investors Show Resilience Amid Price Fluctuations
According to Cointelegraph, Bitcoin investors are demonstrating increased patience, with fewer opting to sell as they anticipate further price increases. Recent data reveals a decline in the number of investors cashing out, as Bitcoin's price recovers to $107,000. Glassnode, a blockchain analytics firm, reported that a significant majority of Bitcoin investors are now holding unrealized profits. This trend follows Bitcoin finding strong support around $98,300, which is approximately the average price paid by short-term holders, defined as those holding for less than 155 days.
Glassnode highlighted that the total unrealized profits for Bitcoin investors have reached $1.2 trillion, approaching the all-time high of $1.3 trillion recorded late last year. The average investor is currently holding a paper gain of 125%. Despite this surge in profitability, there is a strong preference for holding onto Bitcoin, as the current price range does not seem to trigger significant profit-taking. This behavior is evident across various spending metrics, with declining realized Bitcoin profits and other on-chain metrics, such as the long-term holder supply reaching new highs.
The firm noted a sharp decrease in selling by short-term holders following a rise around Bitcoin's May all-time high, indicating that the market expects Bitcoin to increase further. This suggests that the current price range is not compelling enough for investors to continue selling, implying that the market may need to move higher or lower to unlock additional supply. At the time of publication, Bitcoin is trading at $106,170, according to CoinMarketCap, which is 5.5% below its May 22 all-time high of $111,970. Market anticipation is building after Bitcoin closed June with its highest monthly candle, just over $107,000.
Some analysts attribute the inability of Bitcoin to break out of the $100,000 price region to long-term holders. Charles Edwards, founder of Capriole Investments, stated that Bitcoin is struggling to move beyond the $100,000 region due to selling pressure from long-term holders, which has hindered the growth of Bitcoin's price. Edwards noted that long-term holders have been selling their positions since the launch of spot Bitcoin exchange-traded funds in January 2024. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.