Bitcoin Realized Profit Surges as Short-Term Holders Increase Selling, Potential Pressure Below $104K

• Bitcoin’s realized profit surged by $1.5 billion on June 3rd, driven by aggressive selling from short-term holders amid a recent price rally.

• This profit-taking activity signals increased selling pressure that could challenge Bitcoin’s key support levels in the near term.

• According to Glassnode, the Entity-Adjusted Realized Profit spiked sharply, marking one of the most significant waves of profit-taking since the rally began.

Bitcoin’s realized profit hits $1.5B as short-term holders sell aggressively, raising concerns over potential price dips below $104K amid rising profit-taking.

Bitcoin Realized Profit Hits $1.5 Billion Amid Intense Selling Pressure

On June 3rd, Bitcoin experienced a substantial increase in realized profit, reaching $1.5 billion within a single day. This surge was primarily driven by aggressive selling during a brief rally that pushed BTC prices to $106.8K before retracing to $105.2K. The rapid profit-taking reflects a market environment where investors are locking in gains amid heightened volatility.

Source: Glassnode

Data from Glassnode reveals that Bitcoin recorded three separate hourly spikes of $500 million each in realized profit on June 3rd, underscoring a wave of profit-taking rarely seen in recent months. The average coin realized a +16% gain, indicating that sellers were predominantly in profitable positions. This trend suggests that investors are capitalizing on recent price gains to secure returns, potentially signaling a shift in market sentiment.

Short-Term Holders Drive the Selling Momentum

Analysis from CryptoQuant highlights that short-term holders (STHs) are the primary contributors to the current selling pressure. The STHs’ Spent Output Profit Ratio (SOPR) surged from 0.99 to 1.04, indicating that many short-term investors are realizing profits as Bitcoin surpassed $106K.

Source: CryptoQuant

Furthermore, Bitcoin’s Net Unrealized Profit (NUP) has been declining, reflecting a narrowing gap between the current market price and the average cost basis for short-term holders. This contraction implies that many recent buyers are either breaking even or facing losses, prompting them to exit positions to preserve capital or realize modest gains.

Source: CryptoQuant

Potential Impact on Bitcoin Price: Will $104K Support Hold?

The intensified profit-taking raises concerns about Bitcoin’s near-term price stability. Sustained selling pressure, especially from short-term holders, could exert downward momentum on BTC, potentially breaching the critical support level at $104K.

If the current trend continues, technical analysis suggests Bitcoin may test lower support around $102,683. This scenario aligns with a dip in the stock-to-flow ratio, which historically correlates with bearish price action during periods of elevated selling.

Market participants should monitor realized profit metrics and short-term holder activity closely, as these indicators provide valuable insights into potential shifts in market dynamics.

Conclusion

Bitcoin’s recent $1.5 billion surge in realized profit highlights a significant wave of profit-taking, predominantly driven by short-term holders capitalizing on recent price gains. While this reflects healthy market activity, the increased selling pressure poses risks to Bitcoin’s near-term support levels, particularly the $104K threshold. Investors should remain vigilant as continued profit-taking could lead to further price corrections, emphasizing the importance of monitoring on-chain metrics to navigate this evolving landscape effectively.