The crypto market is going through a new phase after a strong price increase. This increase pushes some holders to sell to make quick gains. However, the pace of profit-taking remains lower than that observed at previous peaks. Bitcoin gained 44% in the quarter, reaching almost $85,000. After three consecutive quarters of decline, flows into ETFs show that demand still remains active and sustained in the current crypto market.
In brief
- Bitcoin rose 44% in the quarter, to nearly $85,000.
- Investors made $2.4 billion in profits, compared to $7 billion to $10 billion at previous peaks.
- ETFs saw $2.84 billion in net inflows in just six days.
- ETH outflows from platforms and flows into ether ETFs reinforce the signals followed in the short term.
Profit taking still limited
Bitcoin’s recent rise is encouraging some investors to cash in their gains. This interest appears in the net realized profit/loss indicator. This measures the profits recorded during exchanges on the blockchain. It compares the current price with the last travel price.
To establish this calculation, analysts use the previous transfer as the cost basis. A coin acquired at $40,000 and then sold at $84,000 generates $44,000 in profit. This indicator tracks the pressure exerted by sales. It provides information on the holders.
According to Bitfinex, investors recently made $2.4 billion in profits. This amount remains below bitcoin’s previous highs. During these periods, daily profits reached between $7 billion and $10 billion. Profit taking therefore remains significantly slower.
Spot Bitcoin ETFs continue to attract capital
Meanwhile, ETFs saw a net inflow of $2.84 billion in six days. This amount exceeds the profits made by the holders. Since the start of the year, their net inflows have increased by almost $800 million. These flows provide an additional element of demand.
Some investors are selling to secure their gains, while exchange-traded bitcoin products continue to receive capital. This situation creates a difference between individual sales and movements via ETFs. The data thus distinguishes profit taking from new incoming capital.
The Ether market presents several closely monitored indicators. According to Bitfinex, approximately 410,000 ETH left exchanges in one month. US spot ether ETFs also attracted $680 million in four sessions. These data remain favorable in the short term.
The market remains attentive to external factors
At the time of writing, bitcoin and major cryptocurrencies were not showing weakness after the Bitget hack. The attack was worth $452 million. The major prices remained stable according to the elements provided. The market therefore followed the reactions of investors.
In traditional markets, the progression of the dollar index and Treasury bond yields appears to have stabilized. This development temporarily reduces pressure on risky assets. The context nevertheless remains changing. Investors monitor several macroeconomic indicators alongside the bitcoin market.
Finally, oil volatility remains high with confusing information surrounding the war in Iran. This situation fuels uncertainty in the financial markets. In the short term, ETF flows and profit taking will remain important to follow. Bitcoin will also depend on the context.
The quarter’s rise shows that holders are cashing in, but more slowly than at previous highs. Flows into ETFs provide another indicator of demand. The profits made and the incoming capital will make it possible to follow this phase. Bitcoin therefore remains particularly worth monitoring.
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