Bitcoin investors are currently cashing out profits averaging $1 billion daily, as prices approach $98,000. CryptoQuant warns this trend indicates a possible late-stage bull market that may lead to a market correction. While institutional involvement has increased, underlying investor psychology appears consistent with past cycles. Vigilance is advised as high profit-taking may reflect impending market volatility.
Bitcoin is currently experiencing a surge in daily realized profits, nearing a staggering $1 billion. This spike coincides with the cryptocurrency hitting its highest price point in months, nearing the $98,000 mark. However, analysts are cautioning that this profit-taking behaviour could signal a potential stall or reversal in the market’s recovery.
Recent insights from onchain analytics platform CryptoQuant spotlight this profit-taking trend. In a blog post dated May 8, they highlighted that Bitcoin’s realised profits have surged to levels reminiscent of January’s highs, indicating a heightened cash-out scenario among investors. The overall sentiment is that this trend mirrors behaviour typically displayed during late-stage bull markets, according to CryptoQuant contributors.
The 7-day moving average of realised profit across Bitcoin investors stands at about $1 billion per day. This data suggests that the market is in a phase similar to late 2024, when Bitcoin broke previous all-time highs, exceeding $100,000 for the first time. The aggressive profit-taking habits of investors, even amidst positive price fluctuations observed during March and April 2025, have raised concerns about a looming local top or sharp market correction.
Interestingly, while there’s been a surge in participation from institutional investors—especially with products like US spot Bitcoin exchange-traded funds (ETFs) including BlackRock’s iShares Bitcoin Trust—some analysts argue that the core of investor psychology remains unchanged. Despite the new influx of institutional capital, investors seem to react to price fluctuations in similar ways to previous cycles.
Market behaviour, as noted by CryptoQuant and summarised by contributor Kripto Mevsimi, shows that despite evolving market strategies post-launch of the spot ETFs in January 2024, the underlying investor psychology stays consistent. This consistency, they warn, could foreshadow a period of volatility for Bitcoin if profit-taking continues at this rate.
Polling the current landscape, investors and analysts alike are urged to exercise caution. The lure of substantial realised profits could cloud crucial judgement, essentially leading to hasty decisions that might precipitate an unwanted downturn in Bitcoin’s ongoing price recovery. As always, potential investors are reminded to conduct thorough research, as every investment carries its own risks.
