Bitcoin: Profit Taking Remains Far from Previous Peaks

The crypto market is going through a new phase after a strong price increase. This rise pushes some holders to sell in order to quickly realize gains. However, the pace of profit taking remains lower than that observed at previous peaks. Bitcoin gained 44% over the quarter, reaching nearly 85,000 dollars. After three consecutive quarters of decline, flows to ETFs show that demand remains active and supported in the current crypto market.

Profit Taking Still Limited

The recent rise of bitcoin encourages some investors to cash in their gains. This interest appears in the realized net profit/loss indicator. It measures profits recorded during blockchain trades. It compares the current price with the last movement price.

To make this calculation, analysts use the previous transfer as the cost basis. A coin bought at 40,000 dollars and then sold at 84,000 dollars generates 44,000 dollars of profit. This indicator tracks selling pressure. It provides information about holders.

According to Bitfinex, investors recently realized 2.4 billion dollars in profits. This amount remains below bitcoin’s previous peaks. At those times, daily profits ranged between 7 and 10 billion dollars. Profit-taking remains, therefore, significantly slower.

Spot Bitcoin ETFs Continue to Attract Capital

At the same time, ETFs recorded a net inflow of 2.84 billion dollars in six days. This amount exceeds the profits realized by holders. Since the beginning of the year, their net inflows show an increase close to 800 million dollars. These flows add an additional element to demand.

Some investors sell to secure their gains, while exchange-traded bitcoin products continue to receive capital. This situation creates a difference between individual sales and ETF movements. Data thus distinguish profit-taking from new incoming capital.

The Ether market shows several closely watched indicators. According to Bitfinex, about 410,000 ETH have left exchanges in one month. American spot ether ETFs also attracted 680 million dollars in four sessions. These data remain favorable in the short term.

The Market Remains Attentive to External Factors

At the time of writing, bitcoin and major cryptocurrencies showed no weakness after the Bitget hack. The attack represented 452 million dollars. Major prices remained stable according to provided information. The market therefore followed investors’ reactions.

In traditional markets, the rise of the dollar index and Treasury yields has stabilized. This evolution temporarily reduces pressure on risky assets. The context remains, however, changing. Investors monitor several macroeconomic indicators alongside the bitcoin market.

Finally, oil volatility remains high with confusing information about the war in Iran. This situation maintains uncertainty in financial markets. In the short term, ETF flows and profit-taking will remain important to watch. Bitcoin will also depend on the context.

The quarterly rise shows that holders are cashing in gains, but more slowly than at previous peaks. Flows to ETFs bring another demand indicator. Realized profits and incoming capital will allow tracking this phase. Bitcoin thus remains particularly to be watched.