The unrealized profit of Bitcoin has risen to 1.2 trillion dollars as holders refuse to sell.

According to data from the on-chain analysis platform Glassnode, Bitcoin investors are currently holding approximately $1.2 trillion in unrealized profits. This impressive figure reflects the paper profits that long-term investors have accumulated as Bitcoin continues to trade near record highs.

Changes in the Bitcoin Investor Base

Data from Glassnode shows that the average unrealized profit of each investor is around 125%, lower than the 180% recorded in March 2024, when the price of BTC peaked at 73,000 USD.

Unrealized profit of Bitcoin | Source; GlassnodeHowever, despite the significant unrealized profits, investor behavior shows no rush to sell. Earlier, Bitcoin Magazine reported that daily realized profits remain relatively modest, averaging only 872 million USD.

This is in stark contrast to previous price increases, when realized profits surged from 2.8 billion USD to 3.2 billion USD at BTC price levels of 73,000 USD and 107,000 USD, respectively.

Moreover, the current market sentiment shows that investors are waiting for a stronger price movement before adjusting their positions. This trend indicates that long term investors have strong confidence, with accumulation continuing to outweigh selling pressure.

"This emphasizes that HODLing remains the primary market behavior within the investor community, with accumulation and mature flows far exceeding distribution pressure," Glassnode noted.

Changes in Investor Profiles

Meanwhile, Bitcoin analyst Rezo points out that the current trend reflects a fundamental shift in the profile of Bitcoin holders that has developed significantly. According to him, the typical BTC investor has shifted from short-term speculative traders to long-term investors and institutional allocations.

Rezo emphasizes the increasing influence of institutional investors, such as ETF funds and public companies like Strategy ( formerly known as MicroStrategy).

"The holding base has changed – from traders looking to exit to allocators seeking opportunities. MicroStrategy, with tens of billions of USD in unrealized profits, continues to increase its holdings. ETF funds create continuous demand, not being day traders," he said.

Bitcoin flows into ETFs and public companies | Source: CNBCNotably, public companies like Strategy have increased their Bitcoin holdings by 18% in Q2, while ETF exposure to Bitcoin also rose by 8% during the same period.

Based on these factors, Rezo concluded that most short-sellers have likely left the market in the price range of 70,000 to 100,000 USD. He also suggested that what remains are investors who view Bitcoin not just as a speculative trade but also as a long-term strategic allocation.

Mr. Giáo