Key points:
- Bitcoin investors are capitalizing on the highest price levels seen in months by cashing out profits.
- These profit-taking activities are averaging $1 billion daily, raising concerns about potential market stagnation or reversal.
- Despite increased institutional involvement, expert analysis reveals no significant shift in investor sentiment.
Bitcoin (BTC) is at a critical juncture where the current levels of profit-taking could lead to a “local top or sharp correction,” according to recent research. As highlighted in a Quicktake blog post on May 8, by on-chain analytics platform CryptoQuant, investors are aggressively realizing profits as Bitcoin prices near $98,000.
BTC Profit-Taking Reaches January Highs
This week, Bitcoin realized profits surged to multi-month highs in tandem with the rising BTC/USD value. CryptoQuant suggests that the current market conditions mirror those of late 2024 when Bitcoin broke previous all-time highs, reaching $100,000.
Insights from CryptoQuant indicate that even after the favorable price movements following the March-April drop in 2025, profit-taking remains pronounced. As observed by contributor Kripto Mevsimi, “This behavior is historically typical of late-stage bull markets, where profit-taking becomes predominant even amid rising prices.”
“This is historically consistent with late-stage bull market behavior — where profit-taking dominates, even as price continues to rise.”
Current data shows that the 7-day moving average of realized profits across all Bitcoin holders is approximately $1 billion each day.
History suggests that similar profit-taking phases often precede local tops or sharp corrections, particularly when profit-taking is high and sustained.
Investor Psychology and Its Implications
Notably, some market analysts argue that the Bitcoin investment landscape has fundamentally transformed due to a rising level of institutional engagement. The launch of US spot Bitcoin exchange-traded funds (ETFs), notably BlackRock’s iShares Bitcoin Trust (IBIT), which has witnessed continuous inflows for more than two weeks, has been highlighted as a significant factor.
However, Kripto Mevsimi maintains that despite these developments, the underlying psychological reactions of investors toward BTC price fluctuations have remained unchanged. “Although the market structure has shifted since the introduction of spot ETFs in January 2024, investor psychology has not,” he states.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
