Bitcoin Long-Term Holders Reap Massive Profits While Short-Term Traders Bleed Losses

Bitcoin's patient investors are cashing in big as panic-selling speculators get wrecked in the latest volatility cycle.

The Hodler Advantage

Long-term holders—those diamond-handed believers who weathered multiple 80% drawdowns—are now sitting on life-changing gains while weak-handed traders capitulate at the worst possible moments. Their strategy? Buy during blood-in-the-streets moments and ignore the daily noise that torments reactive speculators.

Short-Term Pain

Meanwhile, leverage-happy day traders keep getting liquidated on minor price swings—paying the 'impatience tax' that ultimately funds the long-term holders' profits. They chase pumps, panic-sell dips, and somehow always manage to buy high and sell low like clockwork.

The Institutional Shift

Smart money continues accumulating through ETFs and direct purchases, treating Bitcoin like digital gold rather than a casino chip. They understand what retail traders never seem to grasp: time horizon matters more than timing the market.

Another brutal reminder that in crypto—just like traditional finance—the fastest way to transfer wealth is from the impatient to the patient. Wall Street might wear nicer suits, but they're playing the same psychological game with fancier terminology.

Long-Term Holders Secure Gains

At the same time, long-term holders are taking profits. Maartun added, “LTH SOPR spiked to 273, meaning long-term holders realized gains about 273 times their cost basis on-chain.” This shows a split in the market. Short-term holders are selling at a loss while long-term holders are witnessing profits. And bitcoin is testing key price levels.

Swissblock, a crypto trading firm, noted the support between $100,000 and $110,000 which has been held since May, saying “a break below this range would require significant selling.”

Lots of noise about Bitcoin dropping below $100k in September.

Beyond indicators, $BTC WOULD need to break the $100k–$110k wall built over 100+ days above $100k.

Not indestructible, but a tough fight for bears. pic.twitter.com/upiCtzQTtd

Prediction market Polymarket also assigned a 73% chance BTC ends the week at $114,000, with a 39% chance of dropping below $112,000. 

Moreover, macro factors are also influencing the market. Investors are focusing on the Federal Reserve’s FOMC minutes and Jerome Powell’s Jackson Hole remarks. Any deviation from expectations could affect Bitcoin and other risk assets.

The market is showing a clear divide. Short-term holders are selling at a loss, and long-term holders are securing profits. Bitcoin’s next test is holding support and retesting $120,000. It remains to be seen if buyers regain control or if prices stay steady.

Also Read: bitcoin price Dips Below $113,000 Amid SEC, AI, and Tariff Fears