Bitcoin's (CRYPTO: BTC) long-term holders are cashing in like never before, realizing an unprecedented $2.02 billion in daily profits, according to a Glassnode report published on Tuesday.

What Happened: This new all-time high (ATH) surpasses the previous record set in March 2024, showcasing the intensity of profit-taking as Bitcoin edges closer to the $100,000 milestone.

The report highlights that long-term holders (LTHs) have distributed over 507,000 BTC since September, leveraging recent price rallies to lock in gains.

"Long-Term Holders are currently realizing a massive $2.02B in realized profit per day," Glassnode states, adding that the robust demand side has been crucial in absorbing this increased sell-side pressure.

However, this level of profit-taking raises questions about market sustainability as Bitcoin navigates its latest bull run.

Interestingly, the composition of coins being sold shows a dominance of relatively newer holdings.

"Most LTH coins transacting are likely to have been acquired relatively recently, more likely to be 6 months old than 5 years old on average," Glassnode notes.

Coins aged between six months and one year accounted for 35.3% of the realized profits, amounting to $12.6 billion in total, indicating significant activity from mid-term investors who entered the market during the ETF launch rally.

The realized profit distribution also reflects varied strategies among investors. While those with smaller percentage gains locked in $10.1 billion (0%-20% profit range), high-return holders—those with profits exceeding 300%—contributed $10.7 billion.

Also Read: Pantera Bitcoin Fund Hits 1,000X Return, Predicts BTC At $740,000 By 2028

This suggests a "chips-off-the-table" approach, where participants with lower cost bases sell smaller quantities of coins but achieve similar profit volumes in USD terms.

The current surge in realized profits also points to a more aggressive distribution phase compared to previous cycles.

"The relative rate of LTH spending is larger than the March 2024 ATH, underscoring a more aggressive distribution campaign," Glassnode explains.

Despite this, the total volume of coin destruction—an indicator of how long spent coins were held—is lower, suggesting that many of the coins being sold were acquired more recently.

As Bitcoin inches closer to the $100,000 mark, the market is showing signs of an overhang in supply, which may necessitate a period of re-accumulation.

The rapid pace of the rally has also left a noticeable "air gap" below $88,000, a zone that could become critical if the market corrects before attempting another move upward.

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Image created using artificial intelligence with Midjourney.