Bitcoin short-term holders have shifted from realizing losses to locking in profits for the first time in weeks, according to on-chain data from CryptoQuant. The firm's Short-Term Holder Profit Loss to Exchanges metric has broken above the critical zero level, signaling this transition to organic profit-taking. This shift is attributed to Bitcoin's recent price surge, which has provided sufficient market liquidity.
Bitcoin has risen roughly 10% since January 1, 2026, with a 6% gain over four days and a 5.6% increase over the past week. At the time of reporting, BTC was trading around $95,349, having recently touched highs above $97,000.
While retail traders appear to be exiting, whale activity is increasing. CryptoQuant founder Ki Young Ju highlighted on-chain data showing larger average order sizes in spot and futures markets, indicating accumulation by larger players. Concurrently, institutional demand is strengthening, with spot Bitcoin ETFs recording $100.18 million in inflows on January 15. This marked the fourth consecutive day of positive flows, bringing the total inflow since January 12 to $1.8 billion, following a prior four-day outflow streak that drained $1.3 billion.
The rally, which also saw Ethereum approach $3,400, triggered significant market liquidations. Approximately $375 million in Bitcoin positions were liquidated in under 24 hours, with data suggesting $1 billion in short positions would be liquidated if BTC surpassed $97,100. Major exchanges like Binance, OKX, and Bybit saw the bulk of this activity.
Macroeconomic conditions are providing a tailwind. The latest U.S. Consumer Price Index (CPI) report showed cooling inflation, with Core CPI easing to 2.6% from 2.7%. This has bolstered market expectations for additional Federal Reserve interest rate cuts later in the year, historically a positive catalyst for risk assets like cryptocurrencies. Wells Fargo's Head of Macro Strategy, Michael Schumacher, echoed this view, stating the bank expects more rate cuts in 2026, though not necessarily imminently, and noted that declining global volatility is boosting investor confidence in riskier asset classes.
