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Bitcoin’s Recent Surge: An Analysis
Bitcoin’s recent rally has demonstrated its strong potential for continued upward movement, even as the pace has moderated. The significant rise in Bitcoin’s price over recent weeks has resulted in a sharp increase in net realized profits, prompting a wave of profit-taking among investors.
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Understanding the Rise in Bitcoin’s Net Realized Profit
Despite a temporary market shake-up, Bitcoin’s momentum is waning slightly, with the cryptocurrency’s value stabilizing around the $115,000 mark. Recent on-chain data highlights a notable increase in Bitcoin’s net realized profits following its ascent to a new all-time high.
Market analyst Darkfost, known for his expertise in crypto trends, highlighted this development on the social media platform X, formerly known as Twitter. His analysis of Bitcoin’s realized profits on a weekly basis reveals a marked increase, suggesting that investors are actively locking in gains. This uptick is indicative of a market cycle phase where optimism is tempered with caution.
According to Darkfost, this surge in profit-taking has been evident since late June, reaching unprecedented levels of up to $3.3 billion. His chart analysis indicates that significant selling of older Bitcoin has largely driven this profit realization. This pattern of sales, beginning around mid-July, explains the observed increase in the 7-day moving average of profits.
While selling pressure increased notably, Darkfost points out that profit-taking has begun to wane. Should this trend persist, he anticipates that Bitcoin may find a breather, potentially paving the way for further upward momentum.
Activity Among Veteran Bitcoin Investors
As Bitcoin continues its gradual ascent, seasoned investors, often referred to as “old hands,” are actively moving substantial amounts of the cryptocurrency. This significant movement involves investors who have held Bitcoin for three to five years.
Data shared by the market expert reveals that over 10,600 BTC, equivalent to approximately $1.3 billion, has been transferred by these long-term holders. This shift in activity among patient investors raises questions about the current phase of the bull market.
Whether these movements are driven by profit-taking, strategic repositioning, or preparation for future market changes, such actions by experienced holders often precede significant shifts in Bitcoin’s price cycles.
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