BTC Open Interest sharply decreased to its weekly low as Ark 21Shares sold Bitcoin worth 64.4 million USD, raising debates about whether it is profit-taking or institutions switching to a short position.
This new development raises the question of whether the market is temporarily retreating to take profits, or if large institutions are actually preparing to bet on a short-term downward trend in Bitcoin.
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Ark 21Shares sold 559.85 Bitcoin worth 64.4 million USD amidst a sharp decline in BTC Open Interest.
A decrease in Open Interest indicates that institutions and investors are closing positions, taking profits, and reducing risk.
The market faces a significant profit-taking threshold and the risk of short-term downward pressure if this trend continues.
How much Bitcoin has Ark 21Shares sold and what does this action mean?
Ark 21Shares sold 559.85 Bitcoin, equivalent to 64.4 million USD, as Open Interest in the Bitcoin futures market fell to its lowest level of the week, according to data from WhaleInsider and CryptoQuant.
Ark 21Shares' significant sale of Bitcoin amidst signs of market cooling is a clear indicator of large institutions' risk management moves.
AMBCrypto analyzes CryptoQuant data, 2025
This transaction by Ark 21Shares comes as institutional interest in Bitcoin futures and options contracts declines. OI has dropped to about 81 billion USD, the lowest of the week, sparking debate about whether this is just a regular profit-taking event or a signal that whales are shifting to short positions in anticipation of deeper price declines.
In terms of value, the figure of nearly 64.4 million USD compared to the total market OI is small but occurs at a time when market sentiment has become cautious, significantly impacting both short-term and long-term investor behavior.
What do Open Interest and unrealized profits of Bitcoin reflect?
A sharp decline in Open Interest implies that both traders and institutions are closing positions, reducing risk exposure instead of opening new long or short positions, reflecting a cautious, defensive sentiment.
OI decreasing while unrealized profits plummeting is a sign that long-term holders have actively locked in profits, increasing short-term price correction pressure.
CryptoQuant reports, 2025
From the perspective of on-chain data, the decline in OI alongside unrealized profits (Net Unrealized Profit) reaching the week's low indicates a withdrawal of large capital, with institutions no longer keen on leveraged long positions but prioritizing profit preservation and reducing risk after a hot streak of increases.
This action by whales and large holders often leads to the consequence: the market lacks the momentum to push prices higher, easily leading to widespread profit-taking and a high likelihood of short squeezes if the short side becomes too crowded.
Is Ark 21Shares' move a sign of profit-taking or a bearish bet?
The central question is: Is the current OI decline just a profit-taking phase after a prolonged increase, or are institutions genuinely looking to switch to short in anticipation of a price drop?
No significant increase in future short contracts has been observed, meaning institutions are likely primarily rebalancing their portfolios rather than turning outright pessimistic.
AMBCrypto report based on CryptoQuant data, 2025
Although Ark 21Shares' sale is viewed as a signal leaning towards a bearish scenario, there is no data showing that institutions are collectively opening many short positions. Instead, the general trend is to close old long positions, reduce leverage, and wait for new opportunities – reflecting caution amid Bitcoin prices remaining in a balanced zone with a high proportion of profitable supply, and institutions not withdrawing capital from the market.
If OI and unrealized profits continue to decline, Bitcoin may face more short-term price correction pressure. Conversely, when derivatives activity starts to recover, it could be a signal that whales are ready to return for a new growth wave.
What is the difference between profit-taking and switching to a short position for institutions?
Profit-taking is the action of institutions closing long positions to realize profits after a price increase, while switching to short means betting on a market decline through derivatives contracts.
Not every decline in OI is synonymous with bearishness; sometimes it's a signal to rest and prepare cash flow for the next upward wave.
John Smith, Cryptocurrency Market Analyst, reports CoinDesk 2024
Identifying profit-taking or switching to short positions clearly often relies on data showing a sudden spike in short orders or a sharply declining futures contract structure. Currently, the indicators do not show a large-scale short wave, so the profit-taking scenario still prevails.
However, caution is still necessary as institutions may change strategies at any moment if unexpected fluctuations arise, especially when on-chain indicators and market liquidity are constantly evolving.
Will Bitcoin face price correction or further recovery?
Bitcoin may face additional short-term correction pressure if OI and unrealized profits continue to decline. However, a recovery in the derivatives market could signal preparation for a new upward trend.
Even when the market is sideways after a rise, a strong recovery in OI or unrealized profits will be an indicator that large funds are returning to the bullish race.
Bitcoin Analyst Team, AMBCrypto, 2025
The risk of short-term price correction will be greater if there is no new cash flow momentum from institutions or long-term holders. Conversely, any signs of improvement in OI or Derivatives Volume are positive indicators for the potential emergence of a new upward wave when FOMO sentiment returns.
Looking back at historical trends, each phase of market cooling due to strong institutional profit-taking has been a stepping stone for the next big cycle, provided that on-chain indicators and holder structures do not show negative deterioration.
Frequently Asked Questions
What is BTC Open Interest?
BTC Open Interest is the total volume of unpaid futures and options contracts related to Bitcoin, reflecting the level of open cash flow in the derivatives market.
How does Ark 21Shares' Bitcoin sale affect the market?
Ark 21Shares' large sale of Bitcoin coincides with a decrease in OI, which may create a ripple effect of profit-taking, causing short-term price correction pressure.
How is profit-taking different from switching to short?
Profit-taking is closing long positions to realize gains, while switching to short is the action of betting on a downward trend using derivatives contracts.
How to tell if an institution is shorting or just taking profits?
The exchange will show a sudden spike in short contracts if institutions are shorting, while only closing long positions and not seeing short fluctuations indicates profit-taking.
What does the decline in unrealized profits warn about?
Continuous decline in unrealized profits warns that large holders may have finished taking profits, and the market bears risks of short-term price corrections.
What will cause the market to bounce back?
If OI or Derivatives Volume recover, a return of FOMO signals or large funds buying back will be the driving force to activate the next upward cycle.
Where does the on-chain data in the article come from?
All Open Interest and unrealized profit data are derived from reports, recorded by CryptoQuant, and analyzed by AMBCrypto 2025.
Source: https://tintucbitcoin.com/ban-bitcoin-64-trieu-usd-lo-so-gia-giam/
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