$11.6 Billion In Profits In One Month For Short-term Investors

Bitcoin has just shattered a new record, but behind this displayed euphoria, a more complex dynamic is emerging. Behind the scenes, short-term investors are multiplying profit-taking and cashing in billions of dollars in just a few weeks. This massive movement that intrigues analysts could well signal a turning point in the market mechanics, where traditional indicators still struggle to decide.

Record profit-taking among short-term investors

After colossal losses a few weeks ago, short-term Bitcoin investors are scaling up profit-taking at a rarely seen level.

This phenomenon was reported in Glassnode’s latest weekly report, which indicates a sudden acceleration in profits realized by this category of investors, known for their reactivity to market movements.

Here are the key data reported by Glassnode:

• 11.6 billion dollars in profits were made over the last 30 days;
• The amount reached up to 747 million dollars per day, a notable peak in this bullish cycle;
• By comparison, in the previous 30 days, cumulative profits totaled only 1.2 billion dollars;
• These figures reflect a “drastic rebound in sentiment and spending behavior of new investors”;
• All of this is measured by the “Realized Profit” indicator, which calculates the difference between the purchase price and the actual selling price of bitcoins, coin by coin.

On-chain analysis reports a persistent trend over the past month. Indeed, the profit realized by short-term investors has remained at exceptionally high levels, directly linked to the rally that led Bitcoin to a new ATH.

This frenzy of profit-taking illustrates a rapid change in the stance of newly entered investors in the market, who are often more sensitive to price fluctuations and more inclined to secure their profits during highly volatile phases.

Absorbable selling pressure or the beginnings of a reversal?

While the realized profit figures are spectacular, Glassnode tempers the interpretation by noting that this profit-taking cycle remains “below the peaks reached at the end of 2024”.

This detail is essential because it implies that the market has not yet reached overheating levels comparable to those observed during previous cyclical highs.

In other words, even though short-term investor activity is intense, it is not necessarily a sign of an overall market exhaustion.

This distinction could indicate a stronger resilience of demand, capable of supporting prices despite the selling pressure.

Moreover, the central question now posed is that of absorbing this pressure. Glassnode wonders: “It remains to be seen whether incoming demand will be able to absorb this selling pressure”.

This sentence crystallizes the current uncertainty. If the buying momentum remains at a sufficient level, massive profit-taking could only have a moderate impact on price. Conversely, a more marked pullback could start, returning the market to a consolidation phase, or even a more severe reversal.

Although current indicators show a still dynamic and partially supported market, caution is advised. The behavior of short-term investors in the coming weeks could serve as a reveal for the overall trend.

If profit-taking intensifies without being offset by an inflow of fresh liquidity, a weakening of the bullish cycle could loom. Conversely, a smooth absorption of this selling pressure by demand could lay the groundwork for a new, potentially more structured bullish impulse, similar to the recent crossing of 111,000 dollars by Bitcoin.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.