Recent data unveils a significant trend of profit-taking among long-term cryptocurrency investors as the market experiences a slowdown from recent all-time highs.
Analytics firm Glassnode reported that holders of major assets like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Tron (TRX) collectively realized approximately $2.8 billion in profits, contributing to the current market cooldown.
Leading the profit-taking charge was Bitcoin, with holders cashing in a staggering $1.5 billion in realized profits on July 18, marking the largest event of its kind since December 2024. ETH followed with a peak of $575 million in profits on August 16, the most significant profit-taking surge of the current market cycle.
Reflecting this trend, Solana saw over $105 million in realized profits on August 17, the highest since early 2025, while XRP experienced a $375 million profit-taking event on July 24, reminiscent of its late 2024 rally.
According to Glassnode, this strategic profit-locking by experienced investors following an extended uptrend directly impacts the current price pressure amidst heightened market volatility.
The market has seen increased volatility recently, with BTC dropping below $113,000 for the first time since early August, dragging down other major cryptocurrencies like ETH and XRP. Cardano (ADA) took an 8% hit, falling to $0.85, contributing to an overall market capitalization loss of over $70 billion overnight.
Notably, sentiment analysis by Santiment indicates a shift towards negative social media sentiment on BTC, potentially signaling a local bottom as contrarian traders may seize opportunities amid market panic.
Short-term data from CryptoQuant reveals a divide between long- and short-term participants, with investors holding Bitcoin for less than five months realizing losses for the first time this year. Meanwhile, Tron offers a positive outlook, with short-term TRX holders enjoying gains of over 30%, hinting at sustained momentum.
As the market navigates these shifts, the actions of long-term investors locking in profits provide valuable insights into the evolving cryptocurrency landscape.
The article was originally published on CryptoPotato.
