Bitcoin $1B daily realized profits signal 'late-stage bull market'
Bitcoin (BTC) faces potential risks of a “local top or sharp correction” due to ongoing profit-taking, according to research from CryptoQuant. Realized profits among BTC investors have surged to multimonth highs as BTC/USD approaches $98,000. The current profit-taking levels are reminiscent of late 2024, when Bitcoin surpassed previous all-time highs. The 7-day moving average of realized profit is around $1 billion per day, indicating aggressive profit-taking behavior typical of late-stage bull markets. Historical patterns suggest that high and continuous profit-taking often precedes market corrections. Despite increased institutional participation, particularly from US spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust, investor psychology remains unchanged, reflecting consistent reactions to BTC price fluctuations.
