Bitcoin Realized Profit Down 19 Percent as Profit Taking Weakens Versus August

On September 29th, CryptoQuant analyst Axel Adler Jr. released his latest analysis, pointing out that despite Bitcoin's recent price approaching $87,000, market profit-taking has decreased rather than increased, with overall selling pressure significantly weaker than in August.

Data comparison shows that on August 26th, when BTC was at $78,600, realized profits over the previous seven days reached a staggering $9.1 billion; while on September 24th, when the price climbed to $84,100, this figure dropped to $7.3 billion, a 19% decrease. Simultaneously, realized losses narrowed from $2.6 billion to $1.5 billion. As of September 28th, net realized profits over the past seven days totaled $4.3 billion.

Looking at the STH SOPR metric, which measures the profitability of short-term investors, the value has consistently remained above 1 since August 20th, indicating that short-term holders are generally still profitable, but profit margins are continuously being compressed. The profit margin declined steadily from 2.8% on August 26th to 1.6% on September 23rd, and further to 1% on September 28th. During this period, the indicator reached a low of 1.003 on September 17th when the price of Bitcoin hit $76,500, but did not fall below the break-even point of 1.

Analysts suggest that the higher BTC price did not lead to a larger-scale profit-taking, possibly indicating that some holders are not in a hurry to sell and are waiting for a higher price. A potentially worsening signal to watch is the STH SOPR falling below 1, simultaneously turning the profit/loss indicator negative.