Bitcoin Steadies As Short-Term Holder Profit-Taking Slows

In brief

Bitcoin’s daily profit-taking plummeted from $2 billion to $1 billion over the past six months.
Short-term profit-taking has slowed, but supply in profit remains high.
Macro uncertainty and growing risks have pushed investors into capital protection mode.

On-chain metrics are flashing potential signs of stabilization for Bitcoin as profit-taking activity declines amid uncertainty in global markets.

Bitcoin’s quick ascent to its all-time high of $123,000 in July has created an “air gap” of thin supply, extending from $110,000 to $117,000, according to Glassnode’s report on Wednesday.

Still, Bitcoin is seeing demand from “opportunistic buying,” pausing a further descent, the on-chain intelligence platform wrote.

The stabilization comes amid a decline in the volume of realized profits from $2 billion in December 2024 to $1 billion in 2025.

The rate of profit-taking from short-term holders has also plummeted to 45%, below the historical neutral threshold of 50%, putting the markets in “a relatively balanced position.”

If Bitcoin overcomes the $116,000 level—the cost basis of investors that purchased Bitcoin in the past month—it could signal that “demand side is regaining control” and could serve as a foothold for the next leg, the report adds.

But is this pause a precursor to a renewed bullish momentum or an extended correction?

A closer look reveals the short-term holder supply in profit declined from 100% to 70% during the recent pullback. And without a “quick rebound in demand, confidence could weaken” and could catalyze more selling to $106,000, the cost-basis for the short-term holder cohort.

“A pullback to the $105,000 to $107,000 range would still be considered a healthy correction within the broader trend for Bitcoin,” Daniel Liu, CEO of publicly-traded crypto firm Republic Technologies, told Decrypt.

Global risk assets, including crypto, still need to contend with downward revisions to the May and June jobs data and the possibility of a potential Fed pivot.

Bitcoin’s 30-day skew declined into negative territory, which reveals that puts are more expensive. Experts who spoke to Decrypt previously highlighted that investors have turned cautious and are now hedging their downside.

Despite “short-term uncertainty, it is important to zoom out,” Liu said, pointing to Bitcoin’s year-to-date returns that are nearly three times the S&P 500 index.