Bitcoin’s recent price surge has sparked a frenzy among its holders, who are scrambling to lock in profits following a bullish technical signal. Since May 22, when Bitcoin’s 50-day simple moving average crossed above its 200-day counterpart—marking a ‘golden cross’—the cryptocurrency has soared to record highs, peaking above $111,000. This has prompted a wave of profit-taking, with on-chain data revealing cashouts exceeding $500 million per hour at times, according to Glassnode.
Profit-Taking Frenzy
The intensity of the profit-taking activity is palpable, with Glassnode noting that entity-adjusted realized profits have spiked significantly in recent days. This metric, which filters out transactions within the same entity to reflect true economic activity, underscores the fervor gripping the market. In fact, this recent wave of profit-taking is the most vigorous since February, as investors capitalize on impressive gains. This mirrors the enthusiasm seen when Bitcoin surged past $94,000 amid growing institutional interest.
“The recent all-time high breakout has catalyzed a substantial increase in profits being locked in,” Glassnode highlighted in its latest report. “With the average coin capturing a +16% profit, it’s evident that we are witnessing a notable shift towards profit realization.”
Despite the frenetic pace, this profit-taking hasn’t yet reached the fever pitch of previous peaks. Historical data suggests fewer than 8% of trading days have been more profitable, hinting at a strategic shift as traders balance gains against the potential for further upward momentum.
Market Dynamics and Future Implications
The current scenario raises intriguing questions about the sustainability of Bitcoin’s rally. While the golden cross typically signals long-term bullish sentiment, the immediate reaction has been one of caution. Investors are seemingly opting to secure gains rather than risk potential downturns—a sentiment echoed by market analyst Sarah Lien, who remarked, “The exuberance is tempered by the lessons of past volatility. Traders are hedging their bets.”
Adding another layer of complexity is the potential introduction of a Bitcoin exchange-traded fund (ETF) by President Donald Trump’s Truth Social platform. Such a development could democratize access to Bitcoin investments, potentially ushering in a new wave of retail participation.
Historical Context and Broader Impacts
This isn’t the first time Bitcoin holders have faced such a crossroads. Historically, golden crosses have preceded bullish runs, but they have also been followed by periods of consolidation. The current dynamic—record profits combined with cautious profit-taking—mirrors past cycles where strategic decisions often dictated market direction. This cautious approach was also evident when Bitcoin surpassed $95K amid resilient U.S. stocks, highlighting concerns over market perception.
As Bitcoin hovers around $105,600, the market waits with bated breath. Analysts like Lien caution against assuming a linear path forward, emphasizing the unpredictable nature of cryptocurrency markets. “While the charts are encouraging, we can’t ignore the potential for external shocks—be it regulatory changes or macroeconomic shifts,” she noted.
The coming weeks will be critical in determining Bitcoin’s trajectory. Will the cautious optimism prevail, or will the market’s inherent volatility take center stage once again? As the crypto community watches, one thing is clear: the narrative is far from over.
Source
This article is based on: Bitcoin Profit Taking Speeds Up Post Golden Cross, Hourly BTC Cashouts Top $500M, Blockchain Data Show
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
