- Bitcoin broke past $59K.
- Short-term traders recorded a 2% profit on their sales.
Bitcoin [BTC] broke past $59,000 in the early hours of the morning, moving one step closer to the all-time high (ATH).
The bull rally, fueled by strong inflows into spot ETFs, saw King Coin market value grow 13% weekly, and more than 37% over the month, data from CoinMarketCap showed.
Bitcoin Investors Lock in Profits
The market boom took the average profitability of Bitcoin investors to new highs.
According to AMBCrypto’s analysis of Glassnode’s data, investors had an unrealized gain of 139% at the time of writing.
Source: Santiment
While this was a measure of the profit that could be captured when participants sold their coins, the actual profit realized also painted a positive picture.
In the short term, trading activity is stimulated
A recent report from Glassnode showed that the market was selling coins at an average of 13% profit.
While long-term investors who entered the tough bear market sold at twice the profit, short-term traders also locked in 2% profits on their sales.
Source: Glassnode
Short-term holders (STH), also known as active market traders, have also increased their trade over the past month.
Data showed that STH sent $2 billion per day to the exchanges since mid-January, also reaching a new ATH of $2.46 billion.
The cohort has been transferring more than 1% of its supply every day since October 2023.
Source: Glassnode
The increased participation of the STH cohort implied an increase in risk appetite for the market.
Diamond hands prefer HODLing
On the other hand, long-term holders (LTH) made much fewer deposits. This was expected as these diamond hands tried to cash in on a rapidly dwindling supply.
Despite getting rid of a significant portion of their holdings over the past month, the LTH cohort still held three-quarters of Bitcoin’s supply.
Read Bitcoin’s [BTC] Price forecast 2024-25
This numerical superiority gives them the power to dictate how long the bull run would last.
Over time, Bitcoin’s story as a store of value has been strengthened. With the economics of supply and demand working in his favor, it won’t be surprising to see diamond hands holding on to their Bitcoins forever.
Source: Glassnode