The surge in Bitcoin’s price, nearing its all-time high of $71,375 on March 26, encountered a temporary pause due to intensified profit-taking activities, as per insights from Glassnode.
According to Glassnode’s newsletter received by Crypto.news, several on-chain indicators highlighted a surge in profit-taking events, with approximately 2.0 million Bitcoin shifting from ‘in-profit’ to ‘in-loss’ as the price retracted from its all-time high to a recent low of $61,200.
However, as the market rebounded slightly, around 1.0 million of these coins regained their ‘in-profit’ status, indicating active profit realization by previous owners. Glassnode noted that this behavior marked one of the more pronounced ‘supply clusters’ during pullbacks since 2022.
The analysis also cited variations in the Spent Output Profit Ratio (SOPR) metric, demonstrating an uptick in profit-taking in spot markets, with the Entity-Adjusted SOPR approaching levels last seen during the 2021 bull market’s peak.
During the rally to the $73.2k all-time high, over $2.6 billion in realized profit was secured through on-chain transactions, with Long-Term Holders accounting for 40% of this profit-taking. Short-term holders locked in the remaining $1.56 billion in profits, leveraging inflowing liquidity and bullish momentum.
Clive Thompson, a former director in Swiss banking and Bitcoin proponent, emphasized that such polarization between profit-taking and further increases is “perfectly normal” near all-time highs. He noted the recent shift in ETF inflows turning positive, contributing to a modest positive effect on the Bitcoin price.
Thompson suggested that if ETF inflows remain positive, Bitcoin’s price is likely to surpass previous records and climb higher.
Glassnode’s observations come amid a recovery phase in the cryptocurrency market, with Spot Bitcoin ETFs witnessing significant inflows of $418 million, marking the largest influx since March 13.
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