A report from Glassnode has revealed how profit-taking from the Bitcoin short-term holders has noted a large uptick in the past month.
Given this, it’s only natural that the recent rally, which has now brought the asset to a brand new all-time high (ATH), would have also induced a reaction from this group.
The indicator works by going through the transfer history of each coin being sold by the members of the cohort to see what price they initially received it at. If this cost basis is less than the spot price that they are now selling at, then the coin’s sale is considered to be leading to the realization of some net profit.
This profit is naturally equal to the difference between the two prices. The Realized Profit calculates this value for all profit transactions to find the total for the STHs as a whole.
Now, here is the chart shared by the analytics firm in the report that shows the trend in the Bitcoin STH Realized Profit over the last few months:
As is visible in the above graph, the Bitcoin STH Realized Profit has remained at elevated levels throughout the past month, indicating that the members of this cohort have predictably been participating in profit-taking.
So far, the profit realization from the STHs has witnessed a peak of $747 million per day, which is quite substantial. In total, this cohort has harvested around $11.6 billion in gains since the start of the selloff.
“For comparison, over the previous 30d period, only $1.2B of profit was realized, underscoring how drastic the rebound in new investor sentiment and spending behavior has been,” notes Glassnode.
With the latest continuation to the bullish momentum, Bitcoin has managed to set a new ATH around $109,400.
