Bitcoin investors are demonstrating increasing patience, with fewer choosing to cash out despite soaring prices. Recent on-chain data reveals a growing reluctance among holders to sell, signaling strong confidence in further price appreciation.
According to a report released by blockchain analytics firm Glassnode on Tuesday, July 1, "as the price rebounds toward $107,000, the vast majority of Bitcoin investors are now holding unrealized profits." This shift is largely attributed to strong support forming around $98,300—the average acquisition cost for short-term holders (those owning BTC for less than 155 days).
This price floor has become a psychological and financial anchor, reinforcing investor conviction that downside risk is limited and future upside remains substantial.
Strong Preference for Long-Term Holding Emerges
Glassnode's analysis highlights a striking trend: the total unrealized profit across the Bitcoin network has reached $1.2 trillion**, nearing the all-time high of $1.3 trillion recorded at the end of the previous bull cycle. On average, current holders are sitting on paper gains of 125%**.
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Despite these impressive returns, investor behavior reflects a clear preference for holding rather than selling. Glassnode notes that "current price levels are insufficient to trigger widespread profit-taking," emphasizing that long-term accumulation remains the dominant market mechanism.
This behavioral shift is confirmed by declining realized profits—a metric that measures the actual capital gains locked in when coins are spent—as well as rising supply held by long-term investors. The proportion of Bitcoin supply held by addresses inactive for over 155 days has reached new highs, reinforcing the narrative of structural scarcity and reduced circulating supply.
Reduced Selling Pressure After All-Time High
Following Bitcoin’s record peak of $111,970 on May 22, short-term holders have significantly reduced their selling activity. This suggests that even after substantial gains, market participants still anticipate higher prices ahead.
Glassnode explains:
“The lack of selling pressure indicates that current price levels aren’t compelling enough to incentivize further supply release. Only significantly higher—or lower—price points may unlock meaningful volumes.”
With Bitcoin trading at approximately **$106,170** at the time of writing (per CoinMarketCap), it remains just **5.5% below its historic high**. Notably, June closed with the highest monthly closing price in Bitcoin’s history—slightly above $107,000—fueling continued bullish sentiment across retail and institutional channels.
Why Is Bitcoin Struggling to Break $100K Consistently?
While many expect a breakout beyond $112,000, some analysts point to persistent resistance caused by strategic selling from long-term holders. Charles Edwards, founder of Capriole Investments, argued on June 29 that sustained outflows from this cohort have been a key factor preventing a decisive move past the $100,000 psychological barrier.
Edwards observed that since the launch of spot Bitcoin ETFs in January 2024, long-term holders have engaged in what he describes as "Wall Street-style profit-taking," gradually reducing their exposure. These measured sell-offs, often masked within broader market flows, may be enough to cap rapid rallies without triggering panic or broad capitulation.
However, this dynamic could shift quickly. If macroeconomic conditions improve—such as rate cuts by central banks or increased institutional adoption—the balance could tip back toward aggressive accumulation.
Key Insights:
- Unrealized profit total: $1.2 trillion
- Average unrealized gain: +125%
- Support level: $98,300 (short-term holder average cost basis)
- Long-term holder supply: At or near all-time highs
- Realized profit trend: Declining
These metrics collectively paint a picture of a maturing asset class where investor behavior is becoming more strategic and less reactive.
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Frequently Asked Questions (FAQ)
Q: What does "unrealized profit" mean in Bitcoin context?
A: Unrealized profit refers to the paper gain an investor holds if they haven’t sold their Bitcoin yet. For example, if you bought BTC at $40,000 and it's now worth $106,000, your unrealized profit is $66,000 per coin.
Q: Why are long-term holders important for Bitcoin’s price stability?
A: Long-term holders reduce circulating supply, increasing scarcity. Their reluctance to sell during rallies often limits volatility and supports sustained price growth by minimizing sudden sell-offs.
Q: How does Glassnode calculate average cost basis?
A: Glassnode uses on-chain transaction data to estimate when coins were last moved and at what price, allowing them to model the average purchase price for different holder cohorts—like short-term vs. long-term.
Q: Could another surge push Bitcoin past its all-time high?
A: Yes. Historically, new highs follow periods of consolidation and low selling pressure. With most investors still in profit but not selling, even modest new demand could trigger renewed upward momentum.
Q: Are we nearing a market top if so much profit exists?
A: Not necessarily. High unrealized profit alone doesn’t signal a top. What matters more is realized profit—actual selling activity. Currently, that remains subdued, suggesting confidence prevails over greed.
Q: How do spot ETFs impact holder behavior?
A: Spot Bitcoin ETFs provide institutional investors with regulated exposure, increasing demand. However, they also enable large holders to exit positions gradually without direct on-chain traces, which may explain subtle but persistent outflows.
The Road Ahead: Consolidation Before the Next Leg Up?
The convergence of strong support at $98,300, record unrealized profits, and declining realized outflows paints an optimistic picture for Bitcoin’s medium-term trajectory. While short-term resistance lingers near $112,000, the underlying fundamentals suggest that any breakout could be powerful—especially if macro tailwinds align.
Investors should monitor key indicators:
- Sustained holding patterns among long-term addresses
- Changes in realized profit/loss ratios
- ETF inflows and institutional positioning
As confidence grows and fewer coins circulate in the open market, Bitcoin continues to behave less like a speculative asset and more like digital scarcity with embedded value.
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Final Thoughts
Bitcoin’s current phase reflects a market maturing under pressure. With $1.2 trillion in unrealized gains and growing preference for long-term holding, the network demonstrates resilience even near all-time highs. While challenges remain—including measured selling from seasoned investors—the broader trend favors accumulation over distribution.
For those watching closely, the message is clear: patience is paying off, and the next wave of growth may already be building beneath the surface.
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