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Data from prominent market intelligence platform Glassnode has shown considerable profit-taking by Bitcoin traders during recent market gains. Market participants called attention to the trend in numerous posts on X.
Citing data from Glassnode, they claimed short-term Bitcoin holders have unloaded over $4 billion in profit through crypto exchanges. The massive sell-off was said to have occurred in two waves. The first was between last Thursday and Friday, followed by the second batch over the weekend.
According to CoinMarketCap data, BTC broke into the $44k to $45k range between Thursday and Friday, marking a new threshold since its decline to $38,740 last month. BTC traders reportedly cashed out $2 billion this period.
Interestingly, Bitcoin maintained its momentum and climbed further into the $47k range by the weekend, with traders cashing out an additional $2 billion. Essentially, these substantial increases in value have prompted short-term holders to quickly sell off their positions to safeguard against potential losses in case of a market correction.
Moreover, a chart from Glassnode confirms the increase in funds moving from short-term Bitcoin holders to exchanges. The graph indicated that since late 2023, the rise in Bitcoin’s price has closely followed the pattern of funds being transferred to exchanges for liquidation.
Despite the reported significant sell-offs that have occurred recently, Bitcoin’s price has continued to climb to higher levels. In particular, Bitcoin has notably surpassed the $50,000 threshold. This is a price point that crypto market participants last witnessed during the peak of the previous bull season, specifically in 2021.
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