Bitcoin Long-Term Holders Have Realized Profits of 3.27M BTC This Cycle, Exceeding 2021 Cycle
Since early 2024, Bitcoin long-term holders (LTHs) have realized profits of nearly 3.27 million BTC, surpassing the levels recorded during the 2021 bull run. This large wave of profit-taking points to increasing sell-side pressure in the market, as many seasoned holders take advantage of higher prices to secure gains. At the same time, Bitcoin ETFs are injecting deep liquidity into the ecosystem, providing a smoother path for large exits and reshaping market dynamics.
Adding to this trend, long-dormant coins are now on the move, a classic sign of late-cycle behavior. These shifts suggest the market may be entering an overheated stage, where profit-taking competes heavily with fresh demand. As of August 27, 2025, BTC trades near $111,017, with future direction hinging on whether inflows can balance out the heavy realization of profits.
How Bitcoin long-term holders realized profits frame this cycle
Glassnode data shows veteran wallets crystallizing more gains than in 2021, although still shy of the 2017 peak (3.93M BTC). This wave of Bitcoin long-term holders realized profits reflects broader profit-taking, typical of late-stage cycles when supply from winners tests market depth and conviction.
Why realized profit is flashing late-cycle
Realized profit tallies how much value coins capture when they move on-chain above their cost basis. In dollar terms, today’s 3.27M BTC is far larger than prior cycles because average entry prices in earlier years (e.g., ~$1,000 in 2015) were so low. As Bitcoin long-term holders realized profits accelerate, it often coincides with cooling momentum, rising volatility, and sharper reactions to supply shocks.
Where the new supply is coming from
Two streams are adding supply:
Legacy wallets and “OG” coins becoming active again.
Institutional venues listing large blocks, including around 80,000 BTC reportedly offered at Galaxy, alongside another ~26,000 BTC turning active.
Together, roughly 100,000 BTC recently came up for sale—evidence that Bitcoin long-term holders realized profits are not just a metric but a tangible source of sell pressure that the market must absorb.
ETFs and capital rotation
Spot BTC ETFs have become a key conduit for liquidity, absorbing distribution while enabling swift capital rotation. As Bitcoin long-term holders realized profits and recycle into cash or risk-alternatives, ETFs help smooth order flow and compress spreads, even as intraday volatility remains elevated.
What to watch next
LTH supply dynamics: If Bitcoin long-term holders realized profits keep rising while prices stall, late-cycle risks increase.
ETF net flows: Sustained inflows can offset distribution; persistent outflows would amplify corrections.
Dormant coin awakenings: More legacy coins moving would extend supply overhang.
Macro: Dollar strength, rates, and liquidity conditions still frame the tape.
Last Words
Bitcoin long-term holders have secured profits of about 3.27 million BTC since early 2024, showing the market’s strong depth and liquidity. However, this also highlights the fragility that often comes in late-cycle phases, where heavy profit-taking begins to clash with fresh demand. ETFs have played a major role in absorbing supply, helping to stabilize flows even as older coins resurface.
Looking ahead, the bull cycle’s longevity depends on two key factors: sustained ETF demand and steady macro conditions. If these hold, the cycle could extend further. If not, sharper corrections may emerge before Bitcoin’s next upward leg.
FAQs
Q1. What does it mean when Bitcoin long-term holders realized profits jump this high?
A . It signals heavy distribution as Bitcoin long-term holders realized profits increase, often marking a late-cycle phase with higher volatility.
Q2. How do ETFs influence Bitcoin long-term holders realized profits?
A . ETFs add deep, continuous liquidity that can absorb Bitcoin long-term holders realized profits, softening drawdowns while enabling capital rotation.
Q3. Is 3.27M BTC a new all-time high for Bitcoin long-term holders realized profits?
A . No. Bitcoin long-term holders realized profits trail the 2017 peak of ~3.93M BTC but exceed the 2021 cycle.
Q4. Why are dormant coins moving now?
A . Higher prices, improved liquidity, and institutional rails make it attractive for LTHs; as Bitcoin long-term holders realized profits rise, more legacy coins tend to awaken.