Bitcoin’s short-term holders are now holding far fewer coins in profit than they were a month ago, according to blockchain analytics firm Glassnode. The share of Bitcoin held by these investors in profit has fallen from nearly 100% in late September to around 70%, reducing the incentive for recent buyers to sell and lock in gains.
In its October 27 market update, Glassnode said the drop in profitability has created a more attractive entry point for investors who expect Bitcoin’s upward trend to continue. However, this does not guarantee a price recovery.
Short-term holders are generally defined as investors who have held Bitcoin for less than 155 days. Their activity is closely watched because recent buyers often react more quickly to price changes and may sell when their holdings become profitable.
In late September, almost all Bitcoin held by this group was in profit. Since then, the market correction has pushed more coins below their purchase prices, leaving fewer unrealized gains available for investors to take.
Glassnode’s latest assessment also shows that Bitcoin profit-taking has slowed significantly since September.
In its October 7 report, the firm found that short-term holders selling Bitcoin at a profit accounted for around 86% of all Bitcoin sent to exchanges on October 4. This was the highest share recorded in a year, as Bitcoin briefly recovered above $85,000 and some recent buyers took profits.
By October 21, realized profit-taking had fallen to roughly half the level recorded during the week of Bitcoin’s September peak.
Realized losses remained relatively stable, with the largest losses during the previous week occurring as Bitcoin approached $80,000 on October 15. Selling by investors who had held Bitcoin for one to two years also slowed, with their daily coin movements falling to less than one-third of early October’s peak.
Despite the slowdown in selling, Bitcoin continues to face resistance at higher prices.
Glassnode’s October 21 analysis identified a major resistance zone between $85,000 and $87,500. Investors who bought Bitcoin six to twelve months earlier had an average purchase price of around $86,700, while sell orders were concentrated between $86,500 and $87,500.
Large liquidation clusters near $85,000 and $87,000 could also increase volatility if Bitcoin attempts another recovery.
On the downside, the $80,000 level had attracted buying interest after Bitcoin approached it on October 15. The area was significant because the estimated average purchase prices of US spot Bitcoin ETF investors and corporate treasury holders were concentrated between $80,000 and $81,500.
However, Bitcoin struggled to hold that support and fell below $80,000 on October 26, reaching an intraday low of around $79,332 as leveraged liquidations and ETF withdrawals added pressure.
Glassnode’s True Market Mean, which estimates the average purchase price of economically active Bitcoin supply, stood near $77,600 in its October 21 analysis.
Institutional demand has also been uneven. US spot Bitcoin ETFs attracted $524.8 million on October 21, but investors withdrew $635.6 million the following day and another $137.9 million on October 23. Together, the two days of outflows totaled $773.5 million.
Despite those withdrawals, the funds still recorded approximately $301.2 million in net inflows over the full five-session period.
Investors are now watching the Federal Reserve’s interest rate decision on October 28 for signals that could influence Bitcoin’s next move. The central bank is scheduled to announce its decision after a two-day policy meeting.
The September Personal Consumption Expenditures inflation report is due on October 29, followed by a major Bitcoin options expiry on October 30. These events could add further uncertainty as traders assess whether Bitcoin can recover or face more selling pressure.