Bitcoin’s pace diminishes as profit-taking reaches $650 billion.

Last month, Bitcoin reached a record high, supported by increasing institutional interest and a surge in Wall Street engagement.

Nevertheless, the upward trend has since decelerated, with BTC remaining confined within a narrow range. It even briefly dipped below $100,000 amid geopolitical tensions involving Israel, Iran, and the US.

Although Bitcoin’s price swiftly bounced back to approximately $106,000 following reports of de-escalation, many within the crypto community anticipated sustained upward momentum to elevate its value to a new all-time high. However, on-chain data indicates that long-term holders are selling into the diminishing market momentum, which is obstructing another upward movement.

Long-term holders selling

A significant factor keeping Bitcoin within a tight range is the extent of realized profits.

Glassnode reported that over $650 billion in profits have already been realized during this cycle, exceeding totals from the previous bull run. Most of this profit was generated from three major selling waves, and analysts believe the market is currently experiencing a cooling phase following the latest wave.

Graph showing Bitcoin’s realized profit from July 2020 to July 2025 (Source: Glassnode)

According to the report:

“At present, the market seems to be in a cooling phase after the third significant wave of profit-taking, suggesting that while substantial gains have been secured, momentum is now waning as realized profitability diminishes.”

On-chain data from Bitcoin analyst James Check confirmed that a considerable portion of the selling has been initiated by long-term holders, particularly those who have retained Bitcoin for a minimum of three years.

Graph showing Bitcoin’s revived supply broken down by age from Jan. 1, 2020, to July 29, 2025 (Source: X/Check)

Charles Edwards, founder of Capriole Funds, also noted that Bitcoin’s price stagnation around $100,000 since January is primarily due to long-term holders selling following the ETF launch.

Edwards further observed that recent acquisitions by holders of 6 months or more, potentially institutional investors such as Bitcoin Treasury companies, have absorbed a substantial portion of the sell-offs, indicating a market flywheel effect.

He stated:

“This dynamic is now beginning to manifest in the on-chain data, and we can observe that 6 month+ BTC holders have surged over that 2-month period. The amount of BTC acquired in the last 2 months by this group has entirely offset all of the BTC sold by long-term holders over the past 1.5 years.”

Weakening market momentum

In addition to the notable selling activities, Glassnode highlighted that another factor influencing Bitcoin’s price performance is its declining on-chain volume.

According to the firm, BTC’s on-chain volume has decreased by approximately 32% in recent weeks, from a high of $76 billion to around $52 billion. Unlike previous rallies, the ascent to $111,000 did not trigger a surge in trading activity. Spot volume currently stands at just $7.7 billion—significantly lower than previous cycle peaks.

It remarked:

“This divergence further emphasizes the lack of speculative intensity, underscoring the market’s reluctance and reinforcing the consolidation narrative.”

Furthermore, the futures markets have also exhibited signs of exhaustion.

While leveraged traders remained engaged during the recent $111,000 surge, the appetite for risk seems to be diminishing.

Graph showing the trading volume for Bitcoin futures from July 2023 to July 2025 (Source: Glassnode)

Additionally, the annualized funding rates and 3-month rolling basis have declined since the Q1 2025 peak. This indicates a transition toward defensive strategies such as cash-and-carry arbitrage or short positions, rather than aggressive long positions.

Given this context, Bitcoin may remain range-bound due to the diminished speculative pressure and weaker trading signals until a new catalyst arises.

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