Who’s Taking Profits on Bitcoin Past $100K and Putting a Lid on the Rally?

Bitcoin Holds Steady Above $100K as ETF Demand Faces Profit-Taking Pressure

Bitcoin’s rally has hit a roadblock, with the cryptocurrency consolidating in a range between $100,000 and $110,000 for 42 consecutive days—a record stretch of sideways trading. Despite strong inflows into spot ETFs, rising stablecoin supplies, and a more favorable regulatory outlook in the U.S., BTC remains unable to break out decisively.

Market Tug-of-War: Buyers vs. Sellers

Alexander Blume, CEO of Two Prime, an SEC-registered investment adviser, says the market is currently locked in a standoff between speculators cashing in profits and long-term investors looking to buy on dips.

“Given global geopolitical tensions, it’s understandable that leveraged traders are reducing risk while longer-term holders step in to accumulate,” Blume told CoinDesk. “Right now, the market is balanced between these opposing forces.”

According to data from Glassnode, short-term holders—those who acquired BTC less than a year ago—have been particularly active in taking profits. On Monday, this group accounted for 83% of realized gains, with holders in the six- to twelve-month window alone contributing $904 million in selling pressure, the second-largest amount so far this year.

Even long-term holders are trimming positions. Glassnode reported that wallets holding BTC for over a year realized $1.2 billion in profits at last week’s price highs, though this has since dropped to $324 million.

“Long-term holders are seizing the opportunity presented by ETF inflows to lock in profits,” said Markus Thielen, founder of 10x Research. “This dynamic has kept volatility low, but the market looks ready for a significant move.”

Miners Add to Supply Pressure

Miners are also contributing to the selling. Data from IntoTheBlock shows that miners’ wallets have collectively offloaded around 30,000 BTC since late May, reducing their balances from 1.94 million to 1.91 million BTC over a span of three weeks.

“Miners have ongoing operational costs that require cash,” said Philippe Bekhazi, CEO of crypto firm XBTO. “Even some long-term holders must liquidate assets occasionally to cover expenses. The key is whether the market can absorb those sales without causing a major price drop.”

Despite ongoing sales, miners’ influence on spot trading volume is diminishing, now at its lowest level since 2022.

Higher Yields Draw Capital Away from BTC

Institutional and retail accumulation, which was robust during bitcoin’s surge off April lows around $75,000, has lost momentum as the price climbed past six figures.

“Accumulation tapered off above $100K as funding rates rose sharply and delta-neutral strategies began offering annual yields between 15% and 30%,” said Ben Lilly, co-founder of Jlabs Digital. “Many traders shifted away from directional bets toward yield capture.”

Delta-neutral trades involve going long spot BTC while shorting perpetual futures to lock in funding rate premiums, enabling traders to earn returns without taking price exposure.

Jimmy Yang, co-founder of Orbit Markets, observed that bitcoin’s evolution into a more mature asset has tempered return expectations.

“Investors no longer expect explosive 10x or 100x gains from BTC,” Yang told CoinDesk. “As a result, some long-term holders are reallocating funds into other asset classes like equities, gold, or private investments for diversification.”

Summer Calm or Big Move Ahead?

Looking forward, Yang expects bitcoin to remain closely linked to equity markets and overall risk sentiment.

“With both stocks and BTC near all-time highs, further gains in equities could lift bitcoin as well,” Yang said. “Still, lighter summer trading volumes might keep markets quiet for the next few weeks.”

Blume suggested that a modest pullback wouldn’t be unusual following bitcoin’s sharp climb from $75,000.

“After such a strong run, some cooling off is healthy,” Blume noted. “The shallow corrections we’ve seen so far indicate underlying strength and set the stage for the next leg up.”

Thielen highlighted $102,000 as key support and $106,000 as immediate resistance levels that traders should watch closely for signs of bitcoin’s next major move.