Bitcoin’s Profit-Taking Surge: Implications of $2.6 Billion Daily Profits

Bitcoin’s journey towards breaking the $70,000 barrier has hit a snag as profit-taking activities surged, halting its upward momentum.

Profit-Taking Patterns and Trends

On March 26, Glassnode’s analysis revealed that Bitcoin’s recent correction of 16% closely resembled the pre-halving pullback seen in previous cycles. This correction caused a significant shift in BTC holders from being ‘in-profit’ to ‘in-loss,’ with the majority now holding assets with a cost basis above $61.2K.

As Bitcoin reached its recent peak, Glassnode reported that over $2.6 billion in realized profit was secured through on-chain transactions. Long-term holders accounted for approximately 40% of this profit-taking, including investors divesting from the GBTC Trust, which witnessed significant outflows.

As the #Bitcoin market hits resistance at a new ATH of $73k, the Long-Term Holder cohort have ramped up their overall distribution pressure.

The market is currently seeing over $2.6B/day in realized profit, as investors start to take chips off the table.

Discover more in the… pic.twitter.com/YHXRnbUnFR

— glassnode (@glassnode) March 26, 2024

Market Response and Behavior

While Grayscale’s GBTC Trust experienced considerable outflows since its conversion to a spot ETF in January, the newly introduced ETFs absorbed these outflows and then some. The remaining $1.56 billion in realized profit came from short-term holders, capitalizing on market liquidity and momentum, mirroring patterns observed during previous cycle peaks.

Glassnode emphasized that profit-taking behaviour aligns closely with historical market patterns during all prior cycle all-time high breakouts. This reassures investors that such actions are typical in a maturing market.

Market Overview and Altcoin Movement

Bitcoin’s price remained relatively stagnant, hovering around $70,000, with a minor 4.6% decline from its recent peak. Despite this, total cryptocurrency market capitalization stood at $2.79 trillion, a mere 9.4% away from its all-time high in November 2021.

While most altcoins traded flat during the Asian trading session, notable movements were seen in BNB, XRP, AVAX, and TON, which experienced slight retractions, while DOGE, SHIB, and ICP showed marginal gains.