Bitcoin Traders Reap $1.5B Profits: A Prelude to a Market Downturn?
Analyzing the Surge in Bitcoin Realized Profits: Intense Selling Activity Sparks Concerns of Potential Market Downturn
Key Points
- Aggressive selling during Bitcoin’s rally led to a surge in realized profit to $1.5B on the 3rd of June.
- If the current selling trend continues, a breach below $104K could drag BTC to $102.7K.
After a three-day climb that saw Bitcoin surge to $106.8k, the cryptocurrency quickly retraced to $105.2K, indicating profit pressure.
This uptrend did not materialize as expected due to holders and investors deciding to sell, leading to an intensified selling pressure from all market participants.
Profit-taking hits $1.5B in one day
Glassnode observed this increased selling activity. The data shows that on the 3rd of June, Bitcoin experienced three separate hourly surges of $500 million, totaling $1.5 billion in realized profit.
This is one of the most aggressive profit-taking waves since the recent rally began. As Bitcoin reached new highs, sellers locked in significant returns, with the average coin capturing a +16% profit.
This suggests that most sellers are in profitable positions. With prices continuing to rise, fewer than 8% of trading days have been more profitable for investors.
Short-term holders lead the exit
So who is selling at such a high rate? Data from CryptoQuant indicates that short-term holders are selling aggressively.
When the realized price spiked, it was mainly driven by short-term holders. Many appear to have closed positions once Bitcoin cleared $106K.
The selling trend among short-term holders is also due to Bitcoin’s Net Unrealized Profit declining.
After Bitcoin pulled back from a recent high, the gap between the current market price and average cost basis for short-term holders shrank. Those who recently acquired Bitcoin are now seeing less profit or making losses.
This surge in profit-taking behavior is concerning. High selling pressure often leads to downward pressure on prices. If short-term holders continue to close positions, it could result in Bitcoin making more losses.
A continued surge in realized profit will see the Bitcoin stock-to-flow ratio dip, negatively impacting price action.
If these conditions persist, Bitcoin could breach its critical support level of $104k and dip towards $102,683.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Australian Dollar breaks 0.69 as hot US CPI raises 50-bp Fed hike risk
Philadelphia Fed President Paulson supports gradual rate hikes but warns inflation is still “stuck ” above target
Core inflation is "stuck" in the 2.5%-3% range, with triple pressures from tariffs, energy, and AI data center demand. Paulson insists on gradual rate hikes while setting clear trigger conditions—if inflation expectations shift upwards or wage pressures build, he will move more quickly. Meanwhile, Governor Waller stated that if October's core CPI rises 0.3% month-on-month, a 50 basis point rate hike in December should be considered. Dallas Fed's Logan said at least two more rate hikes are needed.
During Anthropic IPO roadshow, OpenAI also discloses financial data: Q3 revenue falls short, losses far exceed expectations
OpenAI's revenue in Q3 reached $10 billion, marking a nearly 50% quarter-on-quarter increase. Its annualized run rate is approximately $50 billion, but operating losses have expanded from $10.1 billion to $10.9 billion. Competitor Anthropic has begun its IPO roadshow, with Q3 revenue of $17 billion and losses of only $567 million, leading in both scale and profitability.
Petrobras (PBR.US) Achieves Record Oil and Gas Production in Q3; Adjusted Net Profit Up 78% Year-on-Year, Raises Full-Year Production and Capital Expenditure Guidance
Petrobras released its Q3 2026 financial results after the US market close on November 10.
Crypto prices
More
