Bitcoin Short-Term Holders Realize $11.6 Billion Profits in 30 Days

Bitcoin's recent price surge has led to significant profit-taking by short-term holders, with $11.6 billion in profits realized over the past 30 days. This substantial profit-taking suggests a potential pause or local top in the market, as short-term holders, often considered traders rather than long-term investors, have been actively taking profits. The profit-taking peaked at $747 million daily, a rapid increase from the $1.2 billion realized in the last 30-day period, highlighting a shift in new investor sentiment.

According to Glassnode, the STH Realized Profit/Loss Ratio has spiked, with profits now significantly outweighing losses. This level of profit-taking is typical during bullish trends but often precedes local market tops. Excessive profit-taking can overwhelm new demand, creating overhead supply resistance and halting Bitcoin’s upward trajectory.

Crypto analyst Axel Adler Jr noted that Bitcoin’s 30-day price momentum has already slowed by 38%, currently sitting at 19%. Adler described it as a “technical cooldown” after the recent peak. The Bitcoin researcher suggested the market needs a “breather” before potentially resuming its rally. Similarly, analysis from Hyblock Capital advised caution as the previous three months outlined Bitcoin consistently targeting short liquidity zones above current prices, driving its recent highs.

Retail sentiment is at a 90-day low, with only 31.59% of retail accounts holding long positions. Meanwhile, open interest is at a 90-day high, and combined order books sit in the 91st percentile, signaling high liquidity and potential volatility. This suggests that while there is significant interest in Bitcoin, the market may be due for a correction as traders take profits and reduce their exposure.

Bitcoin experienced a sharp decline, dropping to $108,000 from $111,300 before the New York trading session opened on May 23. The price plunge resulted in a significant $1.2 billion open interest reduction in Bitcoin positions, signaling a wave of deleveraging as traders reduced futures exposure. Despite the initial sell-off, Bitcoin rebounded above $109,000, with speculators dismissing the sell-off period. Regarding the current market trend, crypto trader Honey pointed out that any corrections could be potential buying opportunities. The trader said, “As expected we pumped and now that the golden cross has happened on BTC, we generally see a market-wide pullback so I’d be cautious here. Dips are for buying.”