Bitcoin profit-taking slows as ETF inflows support crypto rally

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Bitcoin profit-taking slows as ETF inflows support rally

Highlights

Bitcoin holders realized $2.4 billion in profits after a 44% rally this quarter, lower than the $7–10 billion levels seen at previous market tops.
Bitcoin ETFs recorded net inflows of $2.84 billion over six days and are almost $800 million positive for 2024, offsetting recent profit-taking.
About 410,000 ETH left exchanges in the past month and U.S. spot ether ETFs attracted $680 million over four sessions, indicating strong investor demand and tightening supply.

Profit-taking data points to a less overheated market

As reported by CoinDesk, bitcoin holders have recently realized about $2.4 billion in profits after the token’s 44% rally this quarter to nearly $85,000, its strongest quarterly performance since the final three months of 2024. The move follows three consecutive quarters of losses, creating room for investors to cash out part of their positions without matching the intensity typically seen at prior cycle tops.

The net realized profit/loss metric tracks gains locked in when coins move on-chain above the price at which they last changed hands. In practical terms, analysts use that earlier transfer price as a cost basis, meaning a coin last moved at $40,000 and later sold or transferred at $84,000 would register a realized profit of $44,000.

Bitfinex said on X that daily realized profits at previous market tops ranged between $7 billion and $10 billion. Against that backdrop, the current $2.4 billion figure suggests holders are taking profits, but not yet in a way that points to the kind of broad distribution often associated with a market peak.

ETF demand and ether flows add support

Spot crypto ETFs continue to provide an offsetting source of demand. Bitcoin ETFs have recorded net inflows of $2.84 billion over six days, exceeding the profits recently realized by holders, and are now nearly $800 million positive for the year.

Ether is also showing supportive near-term signals. Bitfinex data indicates around 410,000 ETH has left exchanges over the past month, while U.S. spot ether ETFs have attracted $680 million across four sessions, a combination that suggests tighter exchange supply and continuing investor interest.

Major cryptocurrencies, including bitcoin and ether, are not showing signs of weakness after the $452 million Bitget hack. In broader markets, gains in the Dollar Index and Treasury yields appear to have paused for now, offering some relief to risk assets, although oil volatility remains elevated amid conflicting headlines tied to the Iran war.

In our earlier article on the surge in U.S. Treasury yields, we covered how the jump in the 10-year and 30-year rates pushed borrowing costs higher and began rippling through global markets from the U.S. to Asia and Europe. We also outlined why sharp moves in yields can strain risk appetite and where stress points may emerge as financing resets, including rate-sensitive sectors and parts of the credit market.

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