Bitcoin's recent rise to a new all-time high above $123,000 has prompted a mass profit-taking among holders, according to data from Glassnode.
Bitcoin Rise and Profit-Taking
Bitcoin reached the record mark of $123,000, prompting profit-taking among holders amounting to approximately $3.5 billion. This event highlights Bitcoin's volatility and the behavior of investors looking to realize profits.
Long-term vs Short-term Holders
Long-term holders realized profits of about $1.96 billion, constituting 56% of the total on-chain profit realized, while short-term holders contributed $1.54 billion. This led to a subsequent 4% decline in Bitcoin’s price, resting at $116,000.
Market Impact and Possible Corrections
Analysts caution about potential further corrections. Nicolai Sondergaard, a research analyst at Nansen, noted, 'Following a large run, some correction is likely, especially after an uninterrupted move from $108,000 to $122,000. It's crucial to observe liquidation levels around $116,300.' The price drop also impacted other assets, such as Ethereum and large-cap altcoins.
Profit-taking after record highs is a common phenomenon in Bitcoin bull markets. Analysts continue to monitor liquidation clusters for insights into future market action.
