Bitcoin Sellers Cash Out $1.5 Billion In Profits As Price Drops 1.5%

Bitcoin sellers cashed out a significant $1.5 billion in profits on the 3rd of June, driven by aggressive selling during the cryptocurrency's recent rally. This surge in profit-taking was observed by Glassnode, which noted that the Entity-Adjusted Realized Profit spiked sharply. The data revealed that Bitcoin experienced three separate hourly surges of $500 million in realized profit, totaling $1.5 billion for the day. This aggressive wave of profit-taking is one of the most substantial since the recent rally began, with the average coin capturing a +16% profit, indicating that most sellers are in profitable positions.

The recent uptrend in Bitcoin's price, which saw it surge to $106.8k over a three-day period, failed to materialize as holders and investors decided to sell, intensifying the selling pressure. This profit-taking behavior has led to a swift retracement in Bitcoin's price, dropping from $106.8k to $105.2k. The market is gradually shifting into profit-taking mode, with fewer than 8% of trading days being more profitable for investors. This trend suggests that holders could continue selling, potentially leading to further price corrections.

Short-term holders (STHs) have been identified as the primary sellers during this period. According to CryptoQuant data, the STHs SOPR (Spent Output Profit Ratio) surged from 0.99 to 1.04, indicating that the realized price spike was mostly driven by short-term holders. Many STHs appear to have closed their positions once Bitcoin cleared the $106k mark. Additionally, Bitcoin’s Net Unrealized Profit is declining, shrinking the gap between the current market price and the average cost basis for STHs. This decline has prompted STHs to sell to lock in profits or avoid losses.

The surge in profit-taking behavior raises concerns about potential downward pressure on Bitcoin's price. If STHs continue to take profits, it could result in further losses for Bitcoin. A continued surge in realized profit could see the BTC stock-to-flow ratio dip, negatively impacting price action. If the current selling trend persists, Bitcoin could breach its critical support level of $104k and dip towards $102,683. This scenario highlights the potential for a deeper correction in the cryptocurrency market, as sellers continue to cash out their profits.