Top Highlights
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Profit-Taking Surge: Long-term cryptocurrency investors have realized approximately $2.8 billion in profits, significantly impacting market prices after a recent upward trend.
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Key Profit Events: Major assets experienced substantial sell-offs; Bitcoin accounted for $1.5 billion, Ethereum $575 million, and XRP $375 million in realized profits, marking their largest spikes in recent months.
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Market Volatility: A shift in market sentiment resulted in a sharp decline, with Bitcoin dropping below $113,000 and other coins following suit, leading to an overall market capitalization loss of over $70 billion.
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Investor Sentiment: Negative social media sentiment towards Bitcoin signals potential local bottoms, while short-term holders of Tron remain optimistic with over 30% gains, indicating a mixed market outlook.
Long-Term BTC, ETH, XRP, SOL Investors Lock in $2.8B as Market Stalls
A significant wave of profit-taking has emerged in the cryptocurrency market. Long-term investors have capitalized on recent gains, selling approximately $2.8 billion across major digital assets. This trend has contributed to a cooling effect on market prices.
On August 20, analytics firm Glassnode highlighted these developments. It reported that holders of Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, and Solana (SOL) booked billions in profits. BTC leads the pack, with investors realizing $1.5 billion in profits on July 18. This marks the largest profit-taking event since December 2024. Following BTC, ETH reached a peak of $575 million in realized profits on August 16, showcasing its strength during this market cycle.
Solana also saw significant activity, with over $105 million realized on August 17, its largest since early 2025. Similarly, XRP experienced a profit-taking event of $375 million on July 24, echoing patterns from its late 2024 rally.
This selling pressure aligns with rising market volatility. BTC recently dipped below $113,000, dragging ETH down past $4,200 and pushing XRP under the $3.00 support level. Other cryptocurrencies, like Cardano (ADA), faced even steeper drops, highlighting a turbulent market phase. Overall, the cryptocurrency market shed more than $70 billion in capitalization overnight.
Despite the downturn, market sentiment has shown interesting shifts. Data from Santiment reveals that social media sentiment toward BTC has turned sharply negative, marking its lowest point since June. Historically, such fear-driven phases often indicate local market bottoms. As panic increases, contrarian traders might seize the opportunity for investments.
Short-term data reflect a gap in experiences between long- and short-term investors. A recent CryptoQuant report indicates that those holding Bitcoin for less than five months faced losses for the first time this year. Analysts suggest this can either flush out weaker hands before a rebound or risk deeper corrections if selling accelerates.
In contrast, Tron (TRX) presents a hopeful narrative. Despite significant long-term profit-taking earlier this month, short-term TRX holders are enjoying gains exceeding 30%. This resilience suggests potential for ongoing momentum even as uncertainty looms in the broader market.
As market dynamics shift, long-term investors showcase their strategic adaptability. Their ability to navigate these challenges can spur further development within technology circles. Such resilience underscores the evolving landscape of cryptocurrency, promising to influence future innovations and investment strategies.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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