Bitcoin's Realized Profit Hits $1.5 Billion: Another Correction for BTC?

Key Insights

• Bitcoin entity adjusted realized profit hits $1.5 billion

• Bitcoin whale offload 12k BTC in 24 hours hitting a 3 month high

Bitcoin Realized Profit Surges

Bitcoin holders and investors have turned to aggressive selling. With Bitcoin struggling to reclaim its recent ATH, it seems most holders are becoming impatient and selling. According to Glassnode data, profit taking from Bitcoin holders is at a recent high.

Chart depicting Bitcoin's entity-adjusted realized profit in USD alongside BTC price fluctuations from December to early June, highlighting periods of significant profit realization and market volatility.

As per Glassnode, realized profit has surged with entity-adjusted realized profit spiking above $500 million per hour three times in the past 24 hours. This means over $1.5 billion as realized price over the past day. The rise in realized profit signals intense, and significant profit-taking activity.

Chart illustrating Bitcoin's entity-adjusted SOPR index, depicting a recent surge in profit taking with a 16% profit per coin, alongside the corresponding price trends over time.

Across market participants, most of the holders are now selling. Glassnode analysis indicates that the recent Bitcoin ATH breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit. Fewer than 8% of trading days have been more profitable for investors, suggesting a meaningful transition into profit-taking activity is underway as reported earlier by EMCryptohub

Bitcoin price and large holders outflow correlation chart showing significant fluctuations in BTC outflows (blue) alongside a rising trend in price (black) from March to June.

Profit-taking is particularly aggressive among Bitcoin large holders. As profit-taking spiked, most of those selling were whales. Data from IntoTheBlock shows that whales have sold over 12k BTC over the past day hitting a three-month high. A rising large holder outflow implies that whales are highly selling and this makes us confirm that the rising realized profit is primarily driven by whales. Often whales turn to sell either to support operations, take profit, or cut losses when they feel the market is going in the wrong direction.

Will BTC Dip Amid Aggressive Selling

Often a higher profit taking leads to increased downward pressure on Bitcoin's price. Therefore, this shift in market behavior with large holders and small orders all turning to selling could result in lower prices for BTC. This is because high selling activity leads to a high supply on exchanges. A high supply with little demand has historically resulted in lower prices.

A continuation of the high volume of profit therefore could lead to Bitcoin dropping below its critical support level of $104k and starting a retrace towards $99k. For this bearish outlook to be invalidated the market needs to start buying and stop selling. If they do so, Bitcoin will start another uptick towards $107k.