Over the past few days, Bitcoin traders have been aggressively taking profits, resulting in substantial cash outs. This article explores current trends and flow dynamics.
Acceleration of Profit-Taking
According to Glassnode data, traders began locking in profits when BTC reached $105,000, leading to sales amounting to $500 million an hour. In the past 24 hours, there were three major selling periods, with most BTC holders, particularly those in wallets under one month and three to six months, reducing their balances.
Flow Dynamics
Over the past few weeks, there has been an influx of BTC into addresses holding between 100 and 1,000 coins, while larger holders with over 1,000 and 10,000 BTC began selling off. Many large holders had already realized profits during previous peaks, and the current selling appears to be driven by smaller wallets offloading BTC onto the open market.
Future Volatility in the BTC Market
Despite the selling, BTC continues to show signs of scarcity in the spot market. Recent trader actions coincide with a drop in the fear and greed index from 74 to 64 points. Open interest in derivative markets has increased by $1.2B in the last day, creating conditions for potential future volatility.
The current dynamics in the BTC market, marked by aggressive profit taking and shifts in cash flows, indicate a sustained interest from both traders and large players.
