Bitcoin traders have been stepping up their profit-taking in the past few days, realizing profits of about $500M an hour. According to data from Glassnode, traders are trying to lock in their gains while assessing their next move in the BTC market.
Traders are profiting from the BTC market, using each recent recovery. As BTC regained $105,000 and showed signs of recovery, traders still sold to lock in recent profits. According to Glassnode data, profit-taking accelerated to $500M an hour, with three major periods of selling for the last 24 hours.
Based on heat waves of traders, wallets holding tokens for less than a month and between three to six months saw their balances reduced. Meanwhile, most tokens saw their value retained or even increased. Most of the sellers have realized profits based on the adjusted Spending Output Profit Ratio. Glassnode data showed the average BTC sold in the past few days had a 16% profit.
Bitcoin gets a boost from derivative traders
In the last few weeks, more tokens have been moved into wallets holding 100 to 1,000 BTC, while bigger holders of over 1,000 to 10,000 BTC sold some of their assets. Many whales already realized profits during previous peaks, and the current selling is likely from small, speculative wallets offloading BTC on the open market. The recent rounds of selling also met with enough buyers aiming to store physical coins. BTC is showing signs of scarcity on the spot market, and even derivative exchanges see an outflow of reserves.
Spot exchanges also have about 1.023 BTC, the lowest reserves since 2022. The remaining 1.30M are on derivative exchanges, with a steep slide in the past month. As with previous local peaks, BTC traders have shown more rational behavior, aiming to lock in gains. At the same time, spot BTC accumulation continues, driven by the recent trend of growing corporate treasuries. Despite the selling, BTC still had the energy to rally as high as $106,559. BTC remains range-bound, with potential for volatility in either direction.
The recent trader behavior follows a drop in the fear and greed index from 64 points to 74 points last week. Realizing profits is not unusual even for whale wallets, and selling originated even from the ETF wallets of BlackRock. Despite the selling, BTC still had the energy to rally as high as $106,559. BTC remains range-bound, with potential for volatility in either direction.
BTC’s open interest on derivative markets increased by $1.2B in the past day, rising again toward $34B after a series of liquidations. In the past few hours, the trend has been toward shorting the asset, though long positions still dominate over 53% of open interest. An accumulation of short positions may also lead to a rally to liquidate the short sellers. The derivatives market is also being watched due to the activity of risky trader James Wynn. His position, with a liquidation price of $104,980, is at risk for even a small downward move, especially driven by organized selling.
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