Cryptocurrency Gains from Unrealized Profits Increase as Investors Take Advantage of Market Recovery
In a recent development, Glassnode, a leading on-chain data analytics platform, has reported a significant surge in Bitcoin realized profits. This increase is largely attributed to long-term holders seizing substantial gains as the cryptocurrency rebounded past the $115,000 mark.
Within a 24-hour period alone, Bitcoin holders realized over $1 billion in profit. This surge in profit-taking momentum is driven by both institutional and retail investors cashing in on their gains.
Long-term holders, defined as those holding Bitcoin for more than about 155 days, are major profit realizers. Holders with 7 to 10 years of holding amassed around $362 million (about 36% of total realized profits in that period), followed by holders in the 1 to 2-year range realizing $93 million. This trend indicates that long-term holders are capitalizing more with recent price rises.
Despite the recent price highs, overall realized profits remain below previous peak levels. As of August 2025, daily realized profits stayed below $750 million. This moderation indicates restrained profit-taking, particularly among short-term holders, which is seen as a bullish signal by market analysts.
The dominance of long-term holders in profit realization suggests confidence and stability. Short-term holders' spikes in realized profits usually align with market peaks but have been more subdued recently.
Interestingly, data from Glassnode and other analytics highlight that the current cycle’s long-term holder realized profits have already surpassed most previous cycles except the 2017 bull run. Yet, extreme profit-taking and supply in profit percentages indicate an "extreme phase" but do not confirm an immediate cycle peak or crash.
Robust interest in Bitcoin was observed during recent market dips, reflecting growing trust in its long and short-term prospects. The accumulation of Bitcoin by investors is seen as early dip-buying during the most recent adjustment.
Moreover, the average amount held by retail investors and ultra-large holders has increased over the last 15 days. Ultra-large holders are defined as wallet addresses holding at least 10,000 BTC, while retail investors hold below 1 BTC.
Investors' sentiment is slowly turning bearish as evidenced by a drop in trading volume, which has decreased by over 5% in the past day. However, Glassnode has identified a bullish behavior among both large and small Bitcoin investors.
As of writing, Bitcoin was trading at $114,911, showing a nearly 1% increase in the last 24 hours. Glassnode notes that these profits may reflect internal transfers or true exits, but the trend suggests a healthy and active market.
In summary, the increase in Bitcoin realized profits is largely driven by long-term holders locking in gains, while short-term holders have remained relatively restrained in profit-taking despite high prices. This has contributed to more stable market dynamics and could be a signal of a sustained bullish phase or a maturing market cycle.
Technology played a significant role in the surge of Bitcoin realized profits, as the blockchain-based cryptocurrency rebounded. The increase in profit-taking was propelled by both institutional and retail investors, who capitalized on their long-term investments in the digital asset market.
Investors' sentiment varies, with some bearish due to a drop in trading volume, while others exhibit a steady accumulation of Bitcoin - a behavior identified as early dip-buying by market analysts. This blend of bullish and bearish sentiments indicates a maturing market cycle and a sustained bullish phase for Bitcoin finance and investing.
