Bitcoin Investors Unrealized Profits Hit $1.2 Trillion as HODLers Dominates

Despite recent market jitters, long-term Bitcoin holders are sitting on unrealized gains worth $1.2 trillion. As Bitcoin regains momentum above $107,000, data from Glassnode shows most investors are deep in profit but are holding firm instead of cashing out. This resilience highlights growing confidence in Bitcoin’s long-term value, despite short-term risks looming.

This massive unrealized gain, calculated using Glassnode’s method of valuing each coin at its last on-chain movement,  stems from the gap between Bitcoin’s current $2.1 trillion market capitalization and its $955 billion realized capitalization. The data suggests that the majority of Bitcoin in circulation was acquired at significantly lower prices, and its holders remain largely unmoved by current volatility.

Bitcoin’s latest bounce from $98,300, following a weekend dip driven by geopolitical tensions, has reinforced bullish sentiment. While some expected panic selling, the market quickly recovered, pushing BTC back above $107,000 and placing most investors back in the green, yet with little evidence of mass profit-taking.

Bitcoin Investors Sit On $1.2 Trillion Profits

The ongoing trend is strongly supported by individuals who have held Bitcoin for an extended period. They now control a record 14.7 million Bitcoin. This shows that many investors are not selling their Bitcoin at the current prices.

Additionally, the daily profit taken by investors has decreased, falling below $900 million. This is much less than the $2.8 billion and $3.2 billion seen during previous market highs.

Even though Bitcoin dropped from $106,000 to $99,000 over the weekend, due to worries about Israel and Iran, most investors remain confident. Bitcoin bounced back from $98,300, a key support level that often indicates the market’s direction.

Information from the Bitcoin network also supports the idea that people are holding onto their Bitcoin. A measure called “Liveliness” indicates that Bitcoin is being held more than spent, suggesting fewer transactions are occurring. At the same time, a measure called the “Sell-Side Risk Ratio” has decreased, suggesting that people are not selling to make or lose money, despite high prices.

Spot Bitcoin ETF Ends Inflow Streaks

The Bitcoin Exchange-Traded Funds (ETFs) listed in the U.S. have seen steady investments, with a recent seven-day average of $298 million. This growing demand creates strong buying interest and helps boost Bitcoin’s market value, which is now over $2 trillion.

However, CoinTab reported that on July 1, U.S. Spot Bitcoin ETFs saw a shift, with an outflow of $342 million. This is the first time this has happened in nearly three weeks, suggesting that investors are becoming more careful, especially as the market prepares for Bitcoin’s typically slower performance in the third quarter.

Currently, Bitcoin is trading at just over $107,600, representing a slight increase over the last 24 hours. This steady performance reflects a market where investors are confident and institutions are supportive, leading to a hopeful outlook for Bitcoin’s future.

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