Bitcoin Drops 5% After $123K Peak As Investors Lock In $3.5B Profits

Bitcoin's price experienced a significant drop, falling over 5% after reaching a new all-time high of $123,231. This correction came as investors decided to lock in profits, pushing the price down to $116,700. Despite this pullback, the market still appears structurally bullish, with some analysts suggesting a short-term consolidation before another potential leg up.

According to on-chain data from Glassnode, the correction was driven by a significant spike in realized profits. Investors realized over $3.5 billion in profits, with long-term holders (LTHs) accounting for $1.96 billion and short-term holders (STHs) contributing $1.54 billion. This level of profit realization by LTHs indicates a maturity in market participation, as these investors typically accumulate during bear phases and selectively offload during high volatility or market peaks. The current wave of profit booking shows that many LTHs saw the $123K milestone as a strategic exit point for partial gains.

Despite the correction, some analysts remain constructive on Bitcoin's outlook. According to Mister Crypto, the recent decline could be healthy in the broader uptrend. If Bitcoin's price revisits the EMA ribbons, which are aligned near the $110K level, it could create an ideal bounce scenario. In strong bullish trends, the EMA ribbons tend to act as dynamic support. If Bitcoin tests this zone and holds, it may quickly reverse higher, potentially targeting $135K in the next leg up.

Adding to the longer-term bullish backdrop, Mister Crypto also highlighted that Bitcoin Treasury companies, which include public firms holding BTC on their balance sheets, now collectively hold more than half the amount of Bitcoin currently held by all ETFs combined. This indicates that long-term institutional interest is not only growing but may be more influential than Bitcoin ETF flows alone. Such holdings often reflect strategic positioning rather than short-term speculation, suggesting that large players still view Bitcoin as a viable long-term store of value.