Bitcoin Profit-Taking Drops 52% Despite New Highs

Bitcoin's profit-taking volume has significantly decreased, falling to $1.00 billion, which is less than half of December's $2.10 billion. This drop is surprising given that Bitcoin has reached new all-time highs. The data indicates a shift in investor behavior, with new traders leading the market while long-term holders are less active.

Glassnode's report highlights that despite Bitcoin hitting a new all-time high in May 2025, the amount being sold for profit was only $1 billion, compared to over $2 billion in December 2024. This suggests that investors are holding onto their Bitcoin, expecting further price increases. The realized profits are lower in magnitude, and long-term holders are holding out, while short-term traders are driving the market. This combination may signal continued bullish expectations from less speculative Bitcoin investors.

The data shows a significant shift in Bitcoin’s coin age distribution. As of May 2025, 76.9% of Bitcoins are less than one month old, a sharp increase from 44.6% in December 2024. Meanwhile, coins older than six months have become less active, dropping to 13.4% in May 2025 from 24.7% in December 2024. This suggests that short-term traders are dominating the market, while long-term holders are less active.

Newer traders seem to be taking the lead, while those holding for a long time have become less active. Those who bought crypto for the long term are probably holding their coins as they expect the market to rise further. As the market booms, traders who only hold assets briefly have the most impact, rather than long-term investors. Traders in the short term normally trade more and tend to earn less profit. Although they create short-lived difficulties, their actions help Bitcoin’s price grow, giving bulls an advantage. As trading patterns shift, the rise of Bitcoin may depend on fewer speculative investments and more long-term holding.

Analyst Michael van de Poppe stated that when Bitcoin reaches $100,000+, investors often feel they missed the best chance to make big profits. As a result, they turn their attention from Bitcoin to other altcoins, believing they can help them gain greater benefits in the future. The analyst explained that this trend is impacting the market, most obviously because of Bitcoin’s recent increase in price. When Bitcoin achieves new records, it could make altcoins the main players in the market.

As of press time, BTC is trading at $111,545.64, up by 4.24% over the past day. While Bitcoin sets new record prices, people are not selling in large numbers. More attention on altcoins could threaten Bitcoin’s top position in the cryptocurrency sector when the market shifts.