Bitcoin News Today: Bitcoin's Late Bull Sign: Profit-Taking Peaks, Momentum Fades

Bitcoin long-term holders (LTHs) have realized more profit in the current bull cycle than in all but one previous cycle, according to on-chain analytics from Glassnode. As of early 2025, LTHs have offloaded 3.27 million BTC in profits, surpassing the 2021 bull run and nearing the 3.93 million BTC sold during the 2017 cycle. This indicates heightened selling pressure and suggests the market may be entering a late bull phase, especially when combined with other metrics such as declining transfer volumes and a falling Taker Buy/Sell Ratio [1].

The elevated realized profit has coincided with increased market liquidity and capital rotation. Approximately 100,000 BTC has recently become available for sale, driven by the activation of dormant “OG” coins and listings at major platforms such as Galaxy. This increased supply has contributed to a slight price correction, highlighting the depth of the market [1]. Additionally, exchange-traded funds (ETFs) have played a role in facilitating these movements, as broader trading volumes have expanded, supporting more dynamic capital flows [1].

Bitcoin’s price has seen significant fluctuations in the past month. It briefly surpassed $124,000 before retreating below $110,000, marking its lowest point since mid-July. The pullback has been attributed to a mix of profit-taking, technical resistance, and shifting macroeconomic expectations. Analysts noted that the formation of a lower high signaled weakening momentum, particularly after positive sentiment from Federal Reserve Chair Jerome Powell's comments at the Jackson Hole symposium faded [3].

On-chain indicators also suggest a market in consolidation. The Adjusted MVRV ratio has compressed to a neutral level of 1.0, signaling that short-term profit-taking has cooled without necessarily reversing the broader uptrend. Meanwhile, the Bitcoin Index Market Phase metric shows the market is in phase 4, a late bull stage. This is supported by a 90-day return of just 5%, which indicates a lack of sustained momentum and a period of market digestion after a sharp rally [5].

Ethereum, the second-largest cryptocurrency, has also experienced a correction after reaching an all-time high of $4,954. The drop, which saw the price fall to around $4,400, was accompanied by significant liquidations as traders reevaluated risk amid macroeconomic uncertainty. Ethereum ETFs have seen heavy institutional inflows, suggesting a shift in risk appetite from Bitcoin to altcoins. While Ethereum’s dominance continues to rise, analysts warn that high MVRV ratios and thin liquidity on centralized platforms could amplify volatility [8].

Despite the corrections, Bitcoin remains up 76% year-to-date, with its dominance in the crypto market holding steady. This resilience has been attributed to a combination of macroeconomic factors, including expectations of a potential Fed rate cut, and continued institutional adoption. However, the broader market environment remains uncertain, with geopolitical and macroeconomic developments likely to influence near-term price action [2].

Source:

[1] BTC Long-Term Holders Realize 3.27M BTC in Profits (https://www.coindesk.com/markets/2025/08/27/bitcoin-long-term-holders-have-realized-profits-of-3-27m-btc-this-cycle-exceeding-2021-cycle)

[2] BTC Profit-Taking Hits Record Highs Beyond 2021 (https://cryptopotato.com/btc-profit-taking-hits-record-highs-beyond-2021-should-investors-be-concerned/)

[3] Bitcoin Slides Below $110000 as Capital Rotation Shifts to (https://www.theblock.co/post/368189/bitcoin-sinks-below-110000)

[4] From Bullish to Cooldown: Bitcoin Remains in Profit-Taking Phase as Demand Fades (https://cryptopotato.com/from-bullish-to-cooldown-bitcoin-remains-in-profit-taking-phase-as-demand-fades-cryptoquant/)

[5] Bitcoin's Late Bull Stage: $1T Cap, Low Profit-Taking, and What's Ahead (https://ambcrypto.com/bitcoins-late-bull-stage-1t-cap-low-profit-taking-and-whats-ahead/)

[6] Ethereum Outshines Bitcoin But Joins Broad Market Pullback (https://www.equiti.com/sc-en/news/crypto-hub/ethereum-outshines-bitcoin-but-joins-broad-market-pullback/)

[7] Bitcoin Slides to $110k as Investors' Attention Shifts to Ethereum (https://www.xtb.com/int/market-analysis/news-and-research/bitcoin-slides-to-110k-as-investors-attention-shifts-to-ethereum)

[8] Faster Than Apple, Faster Than Bitcoin: Ethereum Hits 500 Billion (https://www.cointribune.com/en/neither-apple-nor-bitcoin-reached-500-billion-as-fast-as-ethereum/)