Bitcoin has continued to climb toward the $87,000 area, but on-chain data tracked by Axel Adler Jr shows that profit-taking has been weaker than it was during the market’s earlier peak in August. According to the figures cited by ChainCatcher, the second rally top produced lower realized profit and lower realized loss than the first one, pointing to a more restrained round of selling into strength.
At the first rally high on Aug. 26, when Bitcoin traded around $78,600, realized profit over the previous seven days reached $9.1 billion. At the second rally high on Sept. 24, with Bitcoin rising to $84,100, the same seven-day metric came in at $7.3 billion, down 19% from the earlier peak. Over the same period, realized loss fell from $2.6 billion to $1.5 billion. As of the latest reading, Bitcoin’s net realized profit over the past seven days stood at $4.3 billion.
The data also shows short-term holder SOPR has remained above 1 since Aug. 20, which means coins moved by short-term holders have still been transferred at a profit overall. Even so, that profit margin has narrowed, with the implied gain rate falling from 2.8% on Aug. 26 to 1.6% on Sept. 23, and then to 1% as of today.
Bitcoin has continued to rise toward the $87,000 range, but profit-taking in the market remains weaker than it was in August, according to monitoring by Axel Adler Jr cited by ChainCatcher.
Second rally peak showed 19% less realized profit than the first
The data shows that during the second rally top, realized profit across the market was lower than at the first top. Realized loss also declined.
At the first rally high on Aug. 26, Bitcoin traded at about $78,600, and realized profit over the previous seven days reached $9.1 billion.
At the second rally high on Sept. 24, Bitcoin climbed to $84,100, while realized profit over the previous seven days came in at $7.3 billion, down 19% from the earlier round.
During the same period, seven-day realized loss fell from $2.6 billion to $1.5 billion. As of today, Bitcoin’s net realized profit over the past seven days stands at $4.3 billion.
Short-term holders remain in profit, but margins have narrowed
Short-term holder SOPR has stayed above 1 since Aug. 20, indicating that Bitcoin transferred by short-term holders has remained profitable overall. Still, the scale of those gains has narrowed.
At the Aug. 26 peak, the profit rate implied by short-term holder SOPR was 2.8%. At the Sept. 23 peak, it fell to 1.6%, and as of today it has dropped again to 1%.
During Bitcoin’s pullback to $76,500 on Sept. 17, short-term holder SOPR fell as low as 1.003. That briefly narrowed the profit rate on Bitcoin moved by short-term holders to 0.3%, but the metric did not drop below 1.
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