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

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


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