Bitcoin’s price has remained surprisingly stable despite a recent surge in profit-taking by investors. Let’s dive into the details.
Investors Cashing Out Big Time
Data from Glassnode, a blockchain analytics firm, reveals a significant increase in Bitcoin profit-taking. Their “Realized Profit” metric tracks the total profit investors make when they sell or transfer Bitcoin at a higher price than they originally bought it. This metric looks at every transaction, comparing the purchase price to the selling price. If the selling price is higher, it’s counted as realized profit. There’s also a corresponding “Realized Loss” metric for when coins are sold at a loss.
Glassnode’s data, specifically the “Entity-Adjusted Realized Profit,” shows several massive spikes in profit-taking activity in recent weeks. “Entity-Adjusted” means they’ve cleverly accounted for transfers between different wallets owned by the same investor – these internal transfers don’t count as profit-taking.
The chart clearly shows several huge spikes, with some profit-taking sprees exceeding $500 million per hour! These spikes coincided with Bitcoin’s price dipping from near all-time highs, suggesting a possible connection between the selling and the price drop.
Bitcoin’s Unexpected Resilience
Interestingly, despite this intense profit-taking, Bitcoin’s price has held relatively steady. At the time of writing, it’s hovering around $104,900, a slight dip of about 4% over the past week. Whether this resilience will continue if the profit-taking persists remains to be seen. It’s a fascinating situation to watch unfold.
