Here’s the First Moves of the Oldest Whales After Bitcoin Tops $100,000

Long-term Bitcoin holders (LTHs) are starting to take profits after BTC surpassed the $100,000 milestone, according to data from on-chain analytics firm CryptoQuant.

This trend is manifesting itself as an increase in the “long-term owner spent output profit ratio” (LTH-SOPR), which measures the profitability of coins sold by long-term investors by comparing their selling price to the original purchase price.

“Long-term investors have started to take profits as the Bitcoin price has climbed above $100,000,” said Julio Moreno, CryptoQuant’s Director of Research. “LTH-SOPR has risen to four on our charts, indicating that coins sold by long-term holders are making profits four times their original purchase price.” Moreno added that this behavior is typical during Bitcoin bull markets and that current profit-taking levels remain far from extreme.

The activity of long-term holders is a key indicator during market rallies, which typically signal periods of consolidation or short-term corrections. CryptoQuant’s data shows that while profit-taking has increased, it does not signal panic selling or an imminent reversal.

“This is a normal phenomenon during Bitcoin bull markets,” Moreno explained, adding: “The current profit-taking trend is at expected levels and we are not seeing the kind of extreme behavior typically seen before significant price declines.”

The broader macroeconomic landscape could also play a role in Bitcoin’s trajectory, with Bitfinex Head of Derivatives Jag Kooner noting that the upcoming US employment report could have ripple effects on risk assets like Bitcoin.

“Economists expect about 200,000 new jobs in November, rebounding from weak numbers in October caused by hurricanes and labor strikes,” Kooner said. “A strong jobs report could prompt the Fed to reconsider the pace of rate cuts, potentially opting for a more gradual approach. This scenario could strengthen the U.S. dollar and put downward pressure on risk assets, including Bitcoin.”

*This is not investment advice.