Glassnode data shows a dramatic shift in BTC profit-taking behavior. While long-term holders had dominated realized profits earlier this year, that trend reversed yesterday as wallets holding BTC for less than 12 months accounted for 83% of all realized gains.
Notably, the 6–12 month cohort alone realized $904 million in daily profit—marking the second-highest profit spike of the year.
This change in profit realization coincides with a critical juncture identified by CryptoQuant report, using the Index Bitcoin Cycle Indicators (IBCI).
After peaking above 75% earlier in the year—signaling market distribution—the IBCI has since corrected and now sits near the 50% zone. This midpoint typically marks a transitional phase in Bitcoin cycles, occurring between post-rally consolidation and a potential new upward leg.
According to historical patterns, the current equilibrium phase often precedes renewed bullish momentum. The absence of widespread euphoria and the steady recovery in BTC price point to a market that is cooling, not collapsing.
Importantly, the IBCI only signals the end of bull cycles when it consistently reaches 100% territory—something that has yet to occur. With Bitcoin still hovering near its all-time highs and on-chain fundamentals strengthening, the market may be preparing for another upward impulse.
Should price action continue to align with this on-chain narrative, a return to the distribution region on the IBCI could confirm the next major leg of the bull cycle.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/short-term-bitcoin-holders-cash-in-as-bull-cycle-builds/