Bitcoin (BTC) is witnessing significant profit-taking activities, especially by its short-term holders. Currently trading at $68,740.53, the digital currency has shown remarkable resilience and growth in recent months. However, CryptoQuant data according to, on-chain data and market analysis point to a significant profit-taking trend among investors who have held BTC for less than five months. The Output Profit Spent Ratio (SOPR) has moved significantly in line with the profit-taking trends observed during the peaks of past bull markets.
Short-Term Investors Benefit from Earnings
Analysis of the SOPR metric reveals that short-term BTC holders are actively taking profits. This move is likened to the peaks of previous bull markets. This trend marks a pivotal moment for BTC and reflects sentiment from historical market highs. “This movement is something that only happens every few years,” Crypto Dan says, emphasizing the rarity and importance of the current market dynamics.
Despite the potential implications of this trend, the launch of a Bitcoin spot ETF and the anticipated inflow from institutional and retail investors present a complex backdrop that makes it difficult to interpret these profit-taking activities as a definitive top of the current bull market. The analyst argues that Bitcoin is poised for a strong resurgence in 2024 after a brief correction period.
Bitcoin’s Flexibility
Well-known on social media better known as @Checkmatey cryptocurrency expert James Check explained more about the market’s behavior. By analyzing the Market Value – Realized Value (MVRV) ratio and the Realized Price of Bitcoin, Check highlights psychological pricing patterns that influence investor decisions. He notes that the +1 standard deviation level, currently at $70.8k, is acting as a trigger for many investors to secure their gains. This led to approximately 735 thousand BTC re-entering the market, with approximately 60% originating from the Grayscale Bitcoin Trust (GBTC) and the remainder from individual holders. Despite this sell-side activity, the Bitcoin market has only seen a 20% correction from FTX lows. This demonstrated the strength and demand-driven nature of the current bull market. “This is one of the most robust, spot demand-driven BTC bull markets in history,” he added.
