Bitcoin HODLers Rake in $120 Million Amidst Market Dip

Recent on-chain data reveals a surprising trend: Bitcoin long-term holders (LTHs) booked substantial profits during the recent price downturn. This contradicts the typical image of HODLers steadfastly weathering market volatility.

Analyst Ali Martinez highlighted on X that LTH whales, possessing over 1,000 BTC each, engaged in profit-taking. These whales, holding Bitcoin for over 155 days, are considered the market’s diamond hands. However, even the most steadfast investors sometimes participate in selloffs.

Martinez’s chart displays a significant spike in Bitcoin Realized Profit for LTH whales on September 21st, coinciding with the start of a price drop to approximately $112,000. This suggests a correlation between LTH profit-taking and the bearish market action. The total profit harvested by these whales during this period exceeded $120 million.

In contrast, short-term holders (STHs), those holding Bitcoin for less than five months, experienced losses, as noted by CryptoQuant community analyst Maartunn. Data indicates STHs sent 15,700 BTC to exchanges at a loss during the crash, potentially signifying capitulation.

Glassnode’s data further contextualizes this activity. Cumulative Bitcoin LTH Realized Profit for the current bull market stands at 3.4 million BTC – exceeding all but one previous cycle. This highlights the scale of LTH activity during this recent price correction.

Bitcoin’s price has since recovered somewhat, trading around $113,700. While this unexpected profit-taking by LTHs raises questions, it underscores the complexity of Bitcoin’s market dynamics and the diversity of investor behavior even amongst long-term HODLers.

Disclaimer: This information is for educational purposes only and should not be considered financial advice.