Bitcoin’s momentum slows when profits reach $6500 billion

Bitcoin surged to an all-time high last month, bolstered by a wave of increasing institutional demand and Wall Street adoption.

However, the result is that the rally is slower and the BTC is stuck in a narrow range. that It temporarily fell below $100,000 amid geopolitical tensions involving Israel, Iran and the United States.

Bitcoin prices quickly recovered to around $106,000 after the report informed the de-expansion, but many in the Crypto community continued their continued momentum to boost its value to the new ATH. However, data on the chain shows that long-term holders are being sold to weakening market momentum, which is hindering another upward execution.

Long-term holders for sale

One of the main factors that keep Bitcoin in a tight range is the size of realised profits.

GlassNode reported that more than $650 billion in profits have already been realized in the cycle, surpassing the total from the last Bull Run. Most of it comes from three major sales waves, and analysts believe the market is in the cooling phase after the latest wave.

According to the report:

“Currently, the market appears to be in the cooldown phase after a third wave of profit acquisitions. This indicates that while significant profits are secured, momentum is being eased with reduced profitability realized.”

On-chain data from Bitcoin analyst James Check confirmed that much of the sales is driven by long-term holders, especially those who have held Bitcoin for at least three years.

Charles Edwards, founder of Capriole Funds, said Bitcoin’s price stagnation has been around $100,000 since January.

Edwards also noted that recent purchases by six months + holders, perhaps institutional investors like Bitcoin treasury companies have absorbed a significant portion of the sale, suggesting a flywheel effect in the market.

He wrote:

“This dynamic is now beginning to appear in on-chain data, and we see that 6 months + BTC holders have skyrocketed over those two months. The amount of BTC we have acquired over the past two months by this cohort is the past 1. We have fully consumed all BTC over the course of five years.”

weakens the market momentum

GlassNode pointed out that apart from key sales activities, another reason for Bitcoin’s price performance is due to weakening of chain volume.

The company said BTC’s on-chain volume has dropped by about 32% in recent weeks, from $760 billion to about $52 billion in height, according to the company. Unlike previous gatherings, the move to $111,000 did not surge in trading activities. The spot volume is only $7.7 billion. It is below the previous cycle peak.

It pointed out:

“This difference further highlights the lack of speculative strength, highlights market hesitation and strengthens the narrative of integration.”

Additionally, the futures market also shows signs of fatigue.

Leveraged traders remained active during the recent $111,000 move, but their appetite for risk appears to be declining.

Additionally, since the first quarter of 2025, the annual funding rate and three-month rolling base have declined. This shows a shift towards defensive strategies such as cash and fare arbitration and short positions, rather than aggressive long bets.

With this in mind, Bitcoin could be bound by range as its guess pressure drops and trading signals are weak until new catalysts appear.