Bitcoin HODLers Are Cashing In Bigger Profits Than Last Cycle

Bitcoin's relentless HODLers just smashed their own profit records—outpacing previous cycle gains while traditional investors scramble to keep up.

The Unshakeable Strategy

While Wall Street frets over quarterly reports, Bitcoin's long-term holders quietly stack profits that dwarf conventional returns. These diamond-handed veterans ignore short-term noise, leveraging crypto's volatility instead of fearing it.

Cycle Versus Cycle

Current profit-taking levels have decisively exceeded previous cycle peaks. The data doesn't lie—holding through volatility continues rewarding those with iron stomachs and visionary timelines.

Why It Matters Now

As traditional finance struggles with inflationary pressures and regulatory overreach, Bitcoin's profit engine keeps humming. Another reminder that sometimes the best trade is no trade at all—unless you're collecting fees from anxious traders, of course.

Profit-taking becomes an art form when you're playing chess while everyone else plays checkers. Maybe those 'risky crypto bros' understood something hedge funds are still paying consultants to explain.

Who Are Bitcoin’s Long-Term Holders?

In the crypto market, the term long-term holders (LTHs) refers to investors who have held their bitcoin for more than 155 days. Statistically, the longer a holder keeps BTC dormant, the less likely they are to sell. This group represents the so-called “diamond hands” of Bitcoin, often seen as the backbone of the network’s conviction.

While LTHs are famous for holding through volatility, history shows that they eventually realize profits once gains grow too tempting to resist. These waves of selling often coincide with late-stage bull market activity, where new demand must absorb the heavy supply coming from these seasoned investors.

Glassnode’s Realized Profit Indicator

To track this behavior, Glassnode uses the Realized Profit indicator, which measures the amount of BTC sold by LTHs at a profit. According to the report, the metric is especially useful when comparing cycles because profit-taking patterns tend to spike around market tops.

The firm highlights that cumulative LTH profit-taking in the current cycle has already reached 3.27 million BTC. This figure surpasses the realized profits of every previous cycle except for the 2017 bull run, which remains the most profitable period for LTHs.

Why This Matters for the Current Cycle

The key insight from this data is that Bitcoin’s present cycle may already be in an extreme or late-stage phase. Historically, when long-term holders begin cashing out at large scale, it has marked periods where bull market momentum was nearing exhaustion.

However, the sustainability of such a phase depends on one critical factor: demand inflows. As long as enough new capital enters the market to absorb selling pressure, Bitcoin can continue climbing. When demand weakens, cycles tend to peak.

Comparing Current Cycle With Past Bull Runs

From Glassnode’s charts, it’s clear that this cycle’s LTH profit-taking is unusual in both scale and pace.

• 2017 cycle – marked the all-time high of LTH profit realization.

• 2021 cycle – saw significant profit-taking but still less than today.

• Current 2025 cycle – already outpaced nearly all others, with only 2017 higher.

This suggests long-term holders are more active in taking profits now than in the past, potentially a reflection of deeper institutional participation and more liquid markets.

Bitcoin Supply in Profit Supports the Case

Another supporting metric is Percent Supply in Profit, which tracks how much of the circulating BTC supply is currently profitable compared to the price at which it last moved.

According to Glassnode, this measure has been above one standard deviation from its mean for 273 days in this cycle, the second-longest streak ever recorded. The only longer run was during the 2016–2018 bull cycle.

This indicates that a large portion of the supply is sitting at profitable levels, further reinforcing the argument that the market could be in a mature bull phase.

Could This Cycle Be Different?

Despite the data hinting at late-cycle dynamics, some analysts caution that this bull run may not follow historical playbooks exactly. There are several reasons:

• Institutional adoption: Major financial institutions, ETFs, and corporate treasuries are involved in Bitcoin at a scale not seen in earlier cycles.

• Regulatory clarity: With clearer frameworks in key markets, selling pressure may be absorbed by more consistent inflows.

• Macro conditions: Inflation, central bank policy, and geopolitical uncertainty could change how investors view Bitcoin compared to previous cycles.

In short, while profit-taking by long-term holders typically signals that the cycle is maturing, the unique structural changes in today’s market may allow Bitcoin to behave differently.

What This Means for Investors

For retail and institutional investors alike, the data offers both warning signs and opportunities.

• Warning: Historically, heavy LTH profit-taking coincides with tops, so investors should be cautious of potential volatility.

• Opportunity: If demand inflows remain strong, corrections could be viewed as entry points before further upside.

In either case, the report underscores the importance of tracking on-chain indicators to gauge where Bitcoin may stand in its broader market cycle.

Conclusion

Glassnode’s analysis reveals that Bitcoin long-term holders have already realized record-breaking profits this cycle, with only 2017 surpassing the current total. Combined with the Percent Supply in Profit metric, the data suggests that Bitcoin may be entering a late-stage bull market phase.

Still, this cycle’s unique backdrop—marked by institutional involvement, regulatory shifts, and global economic changes—means history may not perfectly repeat. For now, the only certainty is that Bitcoin’s current cycle remains one of the most profitable and dynamic in its history.