Bitcoin Sees Surge in Profit-Taking and Whale Accumulation Amid ETF Outflows

Bitcoin

Bitcoin Sees Surge in Profit-Taking and Whale Accumulation Amid ETF Outflows

The recent all-time high Bitcoin achieved in its market has sent ripples of fresh activity across the crypto scene.

Those who thought the wave of profit-taking seen in September and October was the peak of that wave were mistaken. Bitcoin ETF inflows had finally returned after long being absent, and now that trend is in reverse with leading ETFs experiencing outflows.

With prices moving to unprecedented heights, the typical Bitcoin investor is watching their stake ascend into profitable territory—with coins now locked in at an average profit of 16%. Historically, the average trading day has offered fewer than 8% of trading days that have been more profitable for investors. That signals a shift. Not all market participants are piling in, but the ones who are seem to be taking advantage of the price movement and securing profitable exits.

The recent surge in Bitcoin‘s value has prompted an increased amount of profit-taking among investors. According to blockchain data, the average Bitcoin that changed hands carried a gain of 16% as of last week. That means a lot of people who have held onto their coins are finally cashing in after many months of accumulation. And this profit-taking, by our estimate, puts today’s trading environment among the top 8% of all days in Bitcoins history in terms of investor gains.

The recent #Bitcoin ATH breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit.

Profits taken at such high realized levels tend to put downward pressure on prices, so it‘s no surprise to see local price corrections occurring after such a big move. Our earlier work has shown that when overheated markets experience this kind of profit-taking activity, they typically cool off for a bit before they’re potentially able to make new highs.

Even so, the overall mood is still quite positive. The long-term case for investing in Bitcoin continues to pull in backing from both institutions and individuals, even as those who trade in it for short-term gains have just spent a few days adjusting their positions.

Even with the recent profit-taking surge, crucial Bitcoin investors are sticking around. Indeed, wallets that hold between 10 and 10,000 BTC have seen substantial inflows in the past week. They now total 151,820 on the Bitcoin network, and these accreting wallets have collectively added around 79,244 BTC over just the last seven days, which breaks down to an average of over 11,321 coins per day.

This assertive accumulation highlights that strategic investors are still confident in the market and are positioning themselves ahead of potential future market changes. These wallets—often seen as sorts of ecosystem stakeholders—act as early indicators of investor bullishness.

Significantly, certain of the biggest whales in the network have seized this moment to load up on Bitcoin. Just in the last 96 hours alone, these high-net-worth entities have bought more than 30,000 BTC. They seem to be on a buying spree, perhaps indicating that they view the recent all-time high (ATH) as a market high not. Rather, it looks like they see the recent price action as a further step toward price discovery.

Whale accumulation at this scale has historically been a powerful signal of long-term market strength, often occurring just before or during major upward movements. Their continued accumulation, even as ETFs show signs of weakening demand, hints at a possible divergence between retail or institutional ETF flows and direct, on-chain holdings.

Unlike on-chain Bitcoin accumulation, Bitcoin exchange-traded funds (ETFs) are experiencing the opposite trajectory. Over the last three days of trading, the U.S.-based Bitcoin ETFs have seen an unprecedented $1.21 billion in net outflows. Thats the largest volume of capital that has exited the Bitcoin ETF market since mid-March. The current outflows could be a combination of profit-taking by investors, general economic uncertainty, or perhaps a shift back to direct Bitcoin holdings and other crypto assets.

Before this year, inflows into Bitcoin ETFs had been tepid. But ETF providers had driven significant recent inflows into Bitcoin itself, bringing the price up toward recent highs. When those inflows began to reverse in late August and early September, it marked the first time in a while that institutional repositioning. Either way, this is a reported example of Bitcoin ETFs reversing recent inflows and going into outflows.

Yet, some analysts say that the ETF outflows might be temporary and are linked to bigger financial market adjustments and not necessarily to any dwindling confidence in Bitcoin. They point to the fact that some major holders have been buying up Bitcoin aggressively just lately (and that on-chain fundamentals are still looking pretty strong) as evidence that the current development is a healthy, rebalancing state of affairs and not the opening act of some larger downturn.

Bitcoin has recently hit a new all-time high, and this has set the stage for something potentially major in the market. Traders have taken this opportunity to book some profits. But what has been far more interesting is the behavior of long-term holders and larger investors, who seem to be the very same individuals that have largely been absent from this market since its last high in late 2021. Long-term investors and notable “whales” in this space have been steadily buying, which signals that these entities might have a fortified belief in Bitcoins long-term trajectory.

Blending caution with conviction, the current landscape has Bitcoin on the verge of a new chapter. Three forces shape this next sequence for Bitcoin. First is reduced supply on exchanges—an unfriendly development for sellers. Second is expanding institutional adoption, with big players like Blackrock banging down the door to get in on the action. Third is growing global awareness, with everything from Google searches to nationwide protests in your face inducing even more people to notice Bitcoin.