Not yet the time. The Bitcoin market is buzzing, and according to a recent Glassnode report, BTC investors currently hold $1.2 trillion in unrealized profits—averaging 125% paper gains. Yet, despite this staggering profitability, most investors choose to hold their Bitcoin rather than sell.
Key Takeaways
- Bitcoin’s market has reached an extraordinary state, with investors sitting on $1.2 trillion in unrealized gains.
- Scarcity is intensifying: Long-term holders now control 85.7% of the total BTC supply, reducing market liquidity.
Why Bitcoin Investors Are Choosing HODL
Glassnode’s report highlights that most Bitcoin investors are in paper profit, with unrealized gains totaling $1.2 trillion**—close to the all-time high of **$1.3 trillion in late 2024.
Despite these sky-high returns, investors display a “strong preference for HODLing”, as “current price ranges seem insufficient to trigger significant profit-taking”, analysts note.
This trend aligns with other _on-chain metrics_, like the long-term holder supply, which continues hitting record highs.
👉 Discover how Bitcoin’s scarcity could drive future price surges
Shrinking BTC Supply: A Market Squeeze
Long-term holders aren’t selling. With 16.8 million BTC (85.7% of total supply) locked away, available Bitcoin is dwindling.
Short-term holder supply has dropped 10% this year, bottoming at 2.8 million BTC. This tightening supply could fuel upward price pressure.
Meanwhile, institutional demand grows via spot ETFs and direct accumulation. Corporations building BTC treasuries are 2025’s standout trend, further draining exchange inventories.
👉 Learn why institutions are betting big on Bitcoin
FAQ: Bitcoin HODLing and Market Dynamics
Q1: What does ‘unrealized profit’ mean in Bitcoin?
A: It refers to paper gains from unsold BTC. For example, if you bought Bitcoin at $30K and it’s now worth $60K, your $30K profit is ‘unrealized’ until you sell.
Q2: Why are long-term holders dominant?
A: Strong conviction. Many believe in Bitcoin’s long-term value, preferring to accumulate rather than trade short-term.
Q3: Could this lead to a supply shock?
A: Yes. If demand rises while liquidity shrinks, prices could spike rapidly.
Q4: What’s driving institutional BTC adoption?
A: Macro hedging, ETF accessibility, and corporate balance sheet strategies (e.g., MicroStrategy’s approach).
Q5: When might profit-taking begin?
A: Typically near all-time highs or if macroeconomic risks (e.g., recessions) prompt cash-outs.
Final Thoughts
Bitcoin’s HODL wave reflects deep market confidence. With scarcity mechanics and institutional inflows, the stage is set for potential bullish momentum.
Stay informed—strategize wisely.