On-Chain Data Academy (Part 3): Have the Whales Profiting from Bottom Feeding Cashed Out?

By: blockbeats|2025/04/04 21:15:03

Original Article Title: "On-chain Data School (Part 3): Have the Bottom-Fishing Whales Taken Profit?"

Original Article Author: Mr. Berg, On-chain Data Analyst

This article is the 3rd part of the On-chain Data School series, with a total of 10 parts. It takes you step by step through understanding on-chain data analysis. Interested readers are welcome to follow this series of articles.

TLDR

- This article will introduce the on-chain metric Realized Profit

- Realized Profit shows the daily amount of profit-taking in the market

- Massive Realized Profit is usually only caused by low-cost chip holders

- Tops are usually accompanied by massive Realized Profit

Realized Profit & Realized Loss Overview

Realized Profit, translated as "已实现利润" in Chinese, is based on the price of each BTC at the time of its last transfer and the price at the time of the previous transfer, calculating how many BTC are profitably settled each day. By summing up the total profit from these settled BTC, the daily Realized Profit can be obtained.

Of course, if the price at the time of the last transfer is lower than the price at the time of the previous transfer, it will be recorded as Realized Loss.

On-Chain Data Academy (Part 3): Have the Whales Profiting from Bottom Feeding Cashed Out?

Realized Profit & Realized Loss Chart

Massive Realized Profit is Usually Only Caused by Low-Cost Chip Holders

As shown in the diagram below: Due to the high cost basis of holders, their profit margin is not large, so when they sell, the **Realized Profit** they can generate is not high.

Therefore, when we see a significant amount of Realized Profit, it usually means that holders with a low cost basis are selling BTC.

Realized Profit Calculation Diagram

-- Price

Tops are usually accompanied by significant Realized Profit

When a large number of holders with a low cost basis sell their BTC, we will see clustered high-volume realized profits on the chart.

At this point, since the remaining participants in the market are high cost basis acquirers, and the market price is close to their cost basis, any slight shift in sentiment is more likely to trigger panic selling from them, causing a cascading price drop, forming a top.

Tops are usually accompanied by significant Realized Profit

Conclusion

The above is all the content of On-Chain Data School (III). For readers interested in delving deeper into on-chain data analysis, remember to keep track of this series of articles!

If you would like to see more analysis and educational content on on-chain data, feel free to follow my Twitter handle (X)!

I hope this article has been helpful to you. Thank you for reading.

Original Article Link

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