Bitcoin Investors Are Cashing In Quickly
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Recent findings suggest that Bitcoin (BTC) investors are capitalizing on profits following a surge in the price of the cryptocurrency. This trend mirrors behaviors typically seen towards the end of a bullish market phase.
Increasing Profit-Taking in Bitcoin – Should Investors Be Concerned?
The seven-day moving average of Bitcoin’s net realized profit and loss has predominantly stayed positive since early 2024. The metric even peaked at $1 billion per day as Bitcoin approached new all-time highs last year.
Despite a significant drop in BTC prices from March to April 2025, the inclination to take profits remained strong as Bitcoin regained much of its value and is now hovering around the mid-$90,000 mark.
Related Insights
A contributor from CryptoQuant observed that high realized profits during price increases often indicate a later stage of a bullish market. Drawing parallels to the market trends of 2021, it was noted that similar circumstances preceded local peaks.
Nevertheless, the introduction of spot Bitcoin exchange-traded funds (ETFs) in January 2024 has significantly transformed market dynamics. Investor sentiment remains similar, though patterns of profit-taking have accelerated in terms of both volume and frequency.
The analyst presented several potential market scenarios. First, if realized profits continue to rise, the risk of a substantial correction might increase, potentially sending BTC back down towards $90,000.
Conversely, a decline in profit-taking could signal a shift in the market cycle. In any case, heightened short-term volatility is anticipated. The analyst added:
This indicator does not suggest a complete macro top but rather points to a localized caution area. As always, it’s wise to look at broader trends rather than focusing solely on price movements.
Potential for a Short-Term Bitcoin Pullback
In addition, experienced crypto analyst Ali Martinez cautioned that BTC might revisit the $97,700 resistance level before today’s Federal Open Market Committee (FOMC) meeting, which could lead to another temporary pullback.
Furthermore, the narrative around Bitcoin’s scarcity is facing scrutiny. While the availability of Bitcoin on exchanges is diminishing, current on-chain metrics indicate a supply squeeze is not imminent.
Related Insights
Similarly, the momentum for Bitcoin’s demand has yet to recover from a negative state. Recent insights reveal that market participants are prioritizing short-term trading rather than long-term Bitcoin ownership.
However, momentum indicators like the Stochastic RSI for Bitcoin are showing signs of renewed vigor, suggesting the potential for BTC to reach a new all-time high. At the time of reporting, BTC is priced at $97,248, reflecting a 3.4% increase over the last 24 hours.
Featured image from Unsplash, charts reflect the relevant data.
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