Bitcoin Holders Realizing $139 Million In Profit Per Hour This Rally, Report Says

Source Newsbtc

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.

Bitcoin Realized Profit Has Spiked Alongside Recovery Rally

In its latest weekly report, Glassnode has talked about the recent trend in the Realized Profit of Bitcoin. The “Realized Profit” here refers to an on-chain indicator that, as its name suggests, measures the total amount of profit that the BTC investors are realizing through their selling.

The indicator works by looking at the transaction history of each coin being transferred or sold on the network to check what price it was previously transferred at. Sales of coins that have a price lower than the latest spot value are assumed to be resulting in profit realization equal to the difference between the two.

The Realized Profit sums up this difference for each token being sold at a profit to gauge the network total. Another indicator called the Realized Loss keeps track of the sales of the opposite type.

Now, here is the chart for the hourly Bitcoin Realized Profit shared by the analytics firm in the report:

Bitcoin Realized Profit

As is visible in the above graph, the Bitcoin Realized Profit has witnessed a sharp spike recently. The increase in the indicator has come as BTC has been rallying, so it would appear that the investors have been looking to cash in on the opportunity.

So far, the indicator has achieved 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 (highlighted in green), 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,” notes Glassnode. “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.”

As for which side of the Bitcoin market is involved in this profit-taking event, data points toward the short-term holder cohort. The short-term holders (STHs) refer to the BTC investors who purchased their coins within the past 155 days.

Below is a chart that shows the trend in the Spent Output Profit Ratio (SOPR), a metric that keeps track of the ratio between Realized Profit and Realized Loss, for the STHs.

Bitcoin STH SOPR

From the graph, it’s apparent that the Bitcoin STH SOPR has seen a sustained move above the 1.0 mark, which suggests profit-taking is now notably outweighing loss-taking from these investors.

BTC Price

At the time of writing, Bitcoin is floating around $94,600, up almost 12% in the last week.

Bitcoin Price Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price hits two-week high as USD declines on deteriorating US fiscal outlookGold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
Author  FXStreet
9 hours ago
Gold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
placeholder
Shiba Inu’s Shibarium Struggles As New Accounts Crash To Fresh LowsFollowing its launch by the Shiba Inu team back in August 2023, the Shibarium network has been subject to the highs and lows of the market.
Author  NewsBTC
9 hours ago
Following its launch by the Shiba Inu team back in August 2023, the Shibarium network has been subject to the highs and lows of the market.
placeholder
GBP/USD falls to near 1.3400 following mixed UK PMI dataGBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
Author  FXStreet
10 hours ago
GBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
placeholder
EUR/USD briefly dips as Eurozone PMIs unexpectedly declineEUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
Author  FXStreet
10 hours ago
EUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
placeholder
AUD/JPY falls below 92.50, further downside appears due to rising odds of BoJ rate hikesAUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
Author  FXStreet
10 hours ago
AUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
goTop
quote