On-chain data reveals that Bitcoin (BTC) investors are currently cashing out approximately $1 billion in daily profits, marking the highest levels seen in months. This trend has emerged as BTC prices approach $98,000, echoing patterns last observed before local peaks during previous cycles.
Despite strong institutional participation—mainly through U.S. spot Bitcoin ETFs like BlackRock's iShares Bitcoin Trust (IBIT)—the prevailing behavior still aligns with historical 'late-stage bull market' conduct, characterized by aggressive profit-taking. Market analysts warn that if these elevated realized profits persist, the risk of a local top or a sharp correction increases, referencing similar situations in 2021 that led to significant retracements.
While the structure of the Bitcoin market has evolved due to institutional influence, underlying investor psychology and reaction to price movements remain largely unchanged, according to experts at CryptoQuant. They suggest that persistent high profit-taking typically signals an overheated market and could precede a correction, even as prices continue to rise.