Indicator Overview

The indicator measures the total dollar volume of profits realised on-chain each day specifically by Long-Term Holders (LTHs). Long-Term Holders are defined as entities holding coins for more than 155 days. This metric is calculated by summing the total difference between the coin's price at the time it was last acquired and the price at which it was spent, but only for coins held for a long duration. It provides a direct view of the distribution (selling) behaviour of the most resilient, high-conviction market participants.

How To Use

LTH Realised Profit is a crucial macro-cycle indicator. Extremely high spikes in this metric occur during periods of intense market euphoria and signify a massive wealth transfer as long-term investors sell their most profitable, old coins to newer buyers. Historically, major spikes in this metric have pinpointed macro market tops as the strongest hands exit their positions. Elevated but sustained profit realisation is normal for a healthy bull market but signals that distribution is underway. Conversely, low, suppressed readings (near the zero line) are typical during bear markets, indicating that LTHs are not selling for profit and are instead in a strong accumulation phase. Low readings confirm that the distribution pressure from the resilient cohort is minimal.