Bitcoin Pauses Amid Profit-Taking by Large Investors

Bitcoin Pauses Amid Profit-Taking by Large Investors

Bitcoin’s recent record-breaking rally has encountered a pause, with prices retreating approximately 5% from all-time highs in what is being characterized as a typical bull-market pullback. This decline has been primarily driven by profit-taking among long-term holders and large investors, often referred to as “whales.” The broader cryptocurrency market has felt the impact of this sell-off, although certain tokens such as BONK and PUMP have bucked the trend, posting gains of around 5% over the past 24 hours.

Market Dynamics and On-Chain Activity

The current pullback occurs against a backdrop of heightened risk appetite, where elevated leverage and substantial unrealized profits have increased the likelihood of sell-side pressure. Market sentiment has grown more cautious, with Bitcoin slipping below the $106,500 mark. Some investors are reassessing their positions amid mounting risks, despite continued inflows totaling $11 billion into spot Bitcoin exchange-traded funds (ETFs). The selling activity by large holders has effectively capped Bitcoin’s price momentum, keeping it subdued just above the $100,000 threshold.

On-chain data underscores the magnitude of recent profit-taking. Blockchain analytics firm Lookonchain revealed that a long-dormant “OG” wallet containing 80,000 BTC transferred roughly half of its holdings to Galaxy Digital. Subsequently, Galaxy Digital moved 6,000 BTC to major exchanges Binance and Bybit, a pattern often indicative of impending large-scale sales. This sequence of transactions followed Bitcoin’s surge to a record high exceeding $123,000 earlier in the week.

Tagus Capital, in a recent market update, noted that a spike in the Coin Days Destroyed metric alongside increased inflows to exchanges signals potential profit-taking. Nevertheless, Bitcoin’s resilience amid historic sell pressure continues to inspire confidence in sustained institutional support and robust structural demand.

Shifts in ETF Flows and Investor Sentiment

While inflows into U.S.-listed spot Bitcoin ETFs have slowed sharply, dropping to $297 million on Monday—a 70% decline from Friday—spot Ethereum ETFs have seen increased interest, with inflows rising to $259 million from $204 million. Valentin Fournier, lead research analyst at BRN, interpreted the slowdown in Bitcoin ETF inflows as indicative of waning buyer conviction at elevated price levels.

Looking ahead, upcoming economic data releases may further influence market direction. Fournier highlighted that elevated inflation expectations, partly driven by tariffs, could unsettle investor confidence. However, a positive surprise in the consumer price index (CPI) scheduled for Tuesday or the producer price index (PPI) on Wednesday might help alleviate the current sell-off.

Regulatory and Broader Market Developments

Regulatory developments remain a focal point for market participants. Analysts are closely monitoring the U.S. House of Representatives’ forthcoming votes on the GENIUS and CLARITY Acts. Passage of these bills could facilitate broader institutional engagement in cryptocurrency markets beyond Bitcoin, potentially reshaping the landscape.

In related market news, Coinbase shares reached a record high of $398.50 on Monday, pushing the company’s market capitalization above $100 billion. Meanwhile, Arkham Intelligence reported that SharpLink Gaming acquired an additional 24,371 ETH. Traditional financial markets also exhibited notable activity, with Japan’s 30-year government bond yield briefly touching a multi-decade high of 3.20%, and the MOVE index, which tracks U.S. Treasury market volatility, signaling renewed turbulence.

Upcoming Industry Milestones

Several significant developments are anticipated on July 15. Alchemist is set to launch staking for its ALCH token, introducing advanced features and ecosystem rewards. Lynq will debut its real-time, interest-bearing digital-asset settlement network for institutional clients, built on the Avalanche blockchain. Additionally, TAC, a new layer-1 blockchain featuring proof-of-stake consensus and Ethereum DeFi integration, is scheduled to launch.

As Bitcoin consolidates amid profit-taking and evolving market dynamics, investors remain vigilant to macroeconomic indicators and regulatory changes that could influence the cryptocurrency’s next trajectory.