Bitcoin Profit-Taking Surges—But the ATH Rally Might Just Be Getting Started

Whales are cashing out—but the smart money knows this bull run has legs. Here's why the real FOMO hasn't even hit yet.

Profit signals flash as BTC churns

On-chain data shows veteran holders dumping stacks near $70K—classic distribution behavior that usually precedes a pullback. Except this cycle's playing by different rules.

Retail's still sidelined (as usual)

Google search volume for "buy Bitcoin" remains 60% below 2021 peaks. When normies finally pile in? That's when you'll know we're near the top. Until then—keep stacking.

Wall Street's playing the long game

Spot ETF inflows just hit $200M daily—institutional demand is structural now. Unlike the hedge fund tourists who panic-sold last cycle.

The cynical take? This is exactly what happens before the big players shake out weak hands. Again.

SOPR Suggests Continued Room for Growth Before Cycle Peaks

According to CryptoQuant analyst Gaah, this metric tracks the profitability of coins moved by holders who have kept their Bitcoin for more than 155 days. The latest reading shows that LTHs are beginning to sell at a profit, but the indicator has yet to reach historically critical levels associated with market tops.

Gaah emphasized that although LTH SOPR has crossed the mid-range and currently sits slightly above 2.5, it remains well below the 4.0 threshold historically linked with macro tops in previous cycles.

This implies that long-term investors are realizing gains, but not to an extent that WOULD suggest market euphoria or widespread distribution. In past bull cycles, SOPR readings above 4.0 marked the onset of significant corrections or cycle tops.

The gradual increase in profit-taking could indicate that the market is maturing while maintaining upward potential. Gaah notes that investors should interpret this as part of the natural progression of a bullish phase, though risks of correction still remain.

The ongoing accumulation and realization patterns from LTHs provide insight into how confidence and caution can simultaneously exist in market behavior.

Derivatives Market Remains Active Amid High Open Interest and Bullish Funding Rates

In a separate analysis, CryptoQuant analyst Arab Chain highlighted ongoing activity in the bitcoin derivatives market as another crucial component of the current market landscape.

Open interest, which represents the total number of outstanding futures contracts, remains elevated near $42 billion. This level, though slightly down from recent peaks, is still near historical highs and reflects strong trader participation.

Arab Chain also highlighted the role of funding rates in shaping market sentiment. Currently, rising funding rates suggest dominance by long positions, indicating a bullish market environment.

When this sentiment is paired with high open interest, it may point to heightened risk of volatility, especially in an environment where Leveraged trades are becoming more frequent. The analyst warned that a sudden price move could lead to widespread liquidations if funding becomes unsustainable, forcing exchanges to close out positions.

Featured image created with DALL-E, Chart from Tradingview