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Bitcoin Faces Potential Local Top as Short-Term Holders Take Profits Near $94K

Bitcoin Faces Potential Local Top as Short-Term Holders Take Profits Near $94K

Published:
2025-05-25 12:18:23
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Bitcoin’s recent surge to an all-time high of $112,000 has sparked profit-taking among short-term holders, with significant distributions observed around the $94,500 mark. Historical patterns suggest this behavior often precedes market pullbacks, indicating a possible local peak. As of May 25, 2025, Bitcoin is consolidating around $107,500 after its parabolic rally, while long-term holders continue to hold at a much lower realized price of $33,000, highlighting the stark contrast in investor behavior.

Bitcoin Short-Term Holders Signal Potential Market Peak at $94K

Bitcoin’s recent surge to a record high of $112,000 has triggered profit-taking among short-term holders, with distributions intensifying near the $94,500 level. This behavior historically precedes market pullbacks, suggesting a possible local top. The cryptocurrency now consolidates around $107,500 after its parabolic rally.

Long-term holders maintain a significantly lower realized price of $33,000, demonstrating the stark divergence between speculative and conviction-driven market participants. bitcoin continues to outperform altcoins by over 30% compared to 2021 cycle peaks, reinforcing its dominance during this market phase.

Despite macroeconomic headwinds from elevated Treasury yields, crypto market sentiment remains resilient. The Alphractal report notes this STH distribution pattern mirrors previous cycle inflection points, though the broader uptrend appears intact as bulls defend key support levels.

Bitcoin-Gold Ratio Holds Steady Amid Crypto Rally, Signaling Potential Risk Shift

Bloomberg Intelligence’s Senior Commodity Strategist Mike McGlone observes an unusual stagnation in the Bitcoin-Gold ratio despite Bitcoin’s recent bull run. Both assets have seen significant price appreciation in recent months, yet the ratio measuring how many ounces of Gold one BTC can purchase remains unchanged.

The metric, calculated by dividing Bitcoin’s price by gold’s per-ounce USD value, serves as a critical benchmark for comparing these alternative stores of value. Bitcoin’s "digital gold" narrative faces scrutiny as this stability suggests crypto volatility may be tempering—a development that could reshape institutional adoption strategies.

Bitcoin Hits $110K: What’s Next for Investors

Bitcoin’s meteoric rise above $110,000 in May 2025 reflects a transformative phase for digital assets. The rally coincides with macroeconomic shifts, regulatory advancements like the GENIUS Act, and surging institutional participation. Market structure is evolving as authorities establish guardrails while retail investors accelerate adoption.

Legislative momentum around stablecoins signals growing political acceptance, though congressional dissent persists. This institutionalization phase mirrors traditional finance’s maturation—liquidity deepens as volatility becomes measured in percentage points rather than double-digit swings.

Crypto Investor Arrested for Brutal NYC Kidnapping and Bitcoin Extortion

A crypto investor, John Woeltz, 37, and a 24-year-old accomplice were arrested in Lower Manhattan for the kidnapping and torture of an Italian tourist. The victim, who arrived in New York City in early May, was abducted on May 6 and held captive for over two weeks while the assailants attempted to access his Bitcoin wallet.

Authorities found evidence of extensive physical abuse, including photos of the victim with a gun. The case highlights a growing trend of crimes targeting crypto-wealthy individuals across regions. Woeltz and his accomplice allegedly locked the tourist in a SoHo apartment and subjected him to electric shocks and other forms of torture.

Bitwise Forecasts $420 Billion Bitcoin Inflow by 2026 as Institutional Adoption Accelerates

Bitwise, a leading crypto index manager, projects a seismic shift in Bitcoin’s role within global finance. The firm anticipates up to $420 billion in institutional inflows by 2026, driven by ETF adoption, sovereign wealth funds, and corporate treasury strategies. This bullish outlook suggests Bitcoin may transition from alternative asset to financial system cornerstone.

Three scenarios frame Bitwise’s analysis: a conservative $150 billion estimate, a base case of $420 billion, and an optimistic $600 billion projection. The central forecast implies nearly 10% of Bitcoin’s current market capitalization could flood in through regulated channels within two years. Yet regulatory uncertainty persists, particularly among traditional asset managers navigating compliance frameworks.

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