Bitcoin Profit-to-Loss Ratio Nears Bull Market Extremes as Investors Take Gains

On-chain data indicates that the ratio of Bitcoin profits to losses being sent to exchanges is nearing levels typically seen during euphoric bull markets. This trend suggests a significant increase in profit-taking activity among investors, with the average realized profit from exchange deposits being 12 times larger than the average loss. This disparity is pushing the profit-to-loss ratio to extremes often observed during the most energetic stages of prior bull markets.

According to the latest weekly report from an on-chain analytics firm, the volume of deposits and withdrawals to exchanges can be compared to the total volume settled on-chain, providing insights into the appetite of investors to trade Bitcoin. The data shows that the volume dominance of exchange deposits and withdrawals relative to the rest of the network has been increasing recently, indicating a rising demand for trading activity among investors.

Currently, the exchange volume makes up 33% of all transactions occurring on the Bitcoin network. This level is higher than the peak from early 2025 but lower than the surge from Q1 2024. The nature of this trading activity is largely profit-driven, with the average realized gain from profitable transactions being $9,300, compared to an average loss of $780. This significant disparity in profit and loss transactions is a key indicator of the current market sentiment.

The analytics firm notes that this trend places the average profit at 12 times larger than losses, pushing the ratio between the two near the extremes often seen in the most energetic stages of prior bull markets. This suggests that investors are actively taking profits, which could be a sign of market maturity or a potential correction in the near future. The current price of Bitcoin is around $105,800, down almost 5% in the last seven days, which may reflect some profit-taking activity.