A report by chain-chain analysis firm GlassNode revealed how Bitcoin investors have recently realized that profits are 17% higher than the baseline.
Bitcoin realizes profits have soared along with the recovery rally
GlassNode talks about the latest trends in Bitcoin’s profitability in its latest weekly report. “Realization Profit” here refers to an indicator on a chain, which, as the name implies, measures the total profit achieved by BTC investors through sales.
This metric can check the price of a previously transferred by looking at the transaction history of each coin transferred or sold on the network. Sales of coins that are assumed to be priced below the latest spot value are considered to result in profit realization equal to the difference between the two.
The profits achieved summarize this difference, with each token being sold as profits to measure the total number of networks. Another metric called “achieved losses” tracks the opposite type of sales.
Now, here is a chart of the hourly Bitcoin shared by the analytics company in its report:
As can be seen in the picture above, Bitcoin realizes that profits have witnessed the spike recently. As BTC has been rallying, the increase in indicators has emerged, so it seems investors have been looking to cash in on this opportunity.
So far, the indicator has peaked at $139 million per hour, about $120 million higher than the baseline value. Although this level is not too high compared to the previous bull rally (highlighted in green), it is still worth noting, especially considering how much its levels have dropped over the past few months.
“If the market can absorb this sales pressure without breaking it will draw a more constructive picture on the road ahead,” GlassNode noted. “Instead, the failure to maintain these levels with massive profit realizations may mark the move as another dead cat rebound, consistent with the relief rally that disappeared under similar conditions.”
As for which side of the Bitcoin market involves this profitable activity, the data points to the short-term holder queue. Short-term holders (STHS) refer to BTC investors who have purchased coins in the past 155 days.
The following figure shows the trend of expenditure-output profit margin (SOPR), which tracks the ratio between STH’s realized profit and realized losses.
From the chart, it is clear that the continued movement of Bitcoin STH SOPR exceeded the 1.0 mark, indicating that the profit now significantly exceeds the losses of these investors.
BTC price
At the time of writing, Bitcoin’s rise was about $94,600, up nearly 12% last week.
