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The significant upward shift prompted substantial profit-taking by short-term holders, according to data.
Bitcoin short-term holder P&L (CryptoQuant)
Key points:
- In the last 24 hours, short-term holders have moved over 27,000 BTC to exchanges while in profit, marking one of the largest increases seen in recent months, as reported by CryptoQuant analyst Darkfost.
- Bitcoin reached a peak of $74,000 earlier this week but is now trading below $69,000, as many recent purchasers have opted to take profits after buying around $68,000.
- Institutional interest and macroeconomic conditions continue to provide support, with bitcoin ETFs experiencing more than $700 million in weekly inflows and traders anticipating advancements concerning the U.S. Clarity Act.
The recent surge in Bitcoin to a one-month high of $74,000 led to a significant wave of profit-taking by short-term traders, as indicated by CryptoQuant data.
The largest cryptocurrency is currently priced around $69,000, having lost momentum from Wednesday’s rise above $70,000.
According to CryptoQuant analyst Darkfost, short-term holders transferred over 27,000 BTC ($1.8 billion) to exchanges for profit within the past 24 hours — one of the most substantial increases in recent months.
The only short-term investors presently profiting are those who acquired bitcoin between one week and one month ago, with a realized price near $68,000, indicating that some recent buyers are opting to secure their gains rather than extend their positions.
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Short-term holders are often the most responsive group in the market, and their selling behavior reflects ongoing caution amid the continuing conflict in Iran.
Analysis by CoinDesk on Wednesday highlighted a possible bull trap, as price movements resembled those of January when the price surged to $98,000 before declining.
This decline occurred on Friday, exacerbated by remarks from U.S. President Donald Trump demanding unconditional surrender from Iran – a statement that also caused oil prices to surge.
Bitcoin bull trap (TradingView)
Despite the profit-taking, underlying factors continue to bolster bitcoin’s rally, according to Adrian Fritz, chief investment strategist at 21Shares.
Fritz mentioned that traders are increasingly speculating that the Clarity Act, a bill concerning the U.S. digital asset market structure, might be approved by the end of the year. Current prediction markets estimate the probability at about 70%, though he noted that these markets tend to be relatively illiquid.
He also highlighted escalating geopolitical tensions and strong institutional interest as significant contributors.
Some investors are beginning to see bitcoin as a “gold beta” trade, shifting into the asset following gold’s recent price increase. In addition, spot bitcoin ETFs have demonstrated resilience, with holdings declining by only roughly 5% during the recent downturn and netting over $700 million in inflows this week.
While political events may have contributed to the recent price movements, Fritz stated that the rally is being sustained by geopolitical hedging and an increasing institutional belief in the asset.
