Investors moved swiftly to sell after bitcoin’s short-lived climb to $74,000.

Bitcoin’s rally to a one-month high near $74,000 earlier this week sparked a surge in profit-taking from short-term traders, according to data from CryptoQuant.

The largest cryptocurrency has since pulled back and is now trading around $69,000 after losing momentum following Wednesday’s move above the $70,000 level.

CryptoQuant analyst Darkfost said short-term holders sent more than 27,000 BTC — worth roughly $1.8 billion — to exchanges at a profit over the past 24 hours. The spike in transfers ranks among the largest seen in recent months.

Currently, the only short-term investors sitting in profit are those who accumulated Bitcoin between one week and one month ago, with a realized price close to $68,000. That suggests some recent buyers opted to secure gains rather than maintain their positions.

Short-term holders tend to be among the most reactive participants in the market, and the recent selling reflects continued caution amid the ongoing conflict involving Iran.

Earlier this week, analysis from CoinDesk warned of a possible bull trap, noting similarities to price action in January when bitcoin broke out to $98,000 before quickly reversing lower.

That downside move materialized on Friday and was intensified after comments from Donald Trump demanding Iran’s unconditional surrender, a statement that also helped send oil prices sharply higher.

Despite the latest wave of profit-taking, broader macro and structural factors continue to support bitcoin’s rally, according to Adrian Fritz, chief investment strategist at 21Shares.

Fritz said traders are increasingly speculating that the Clarity Act — a U.S. digital-asset market structure bill — could pass before the end of the year. Prediction markets currently place the probability of passage at roughly 70%, though Fritz noted those markets remain relatively illiquid.

He also highlighted rising geopolitical tensions and steady institutional demand as key drivers supporting the market.

Some investors are beginning to treat bitcoin as a “gold beta” trade, shifting into the digital asset following the recent rally in Gold. At the same time, spot bitcoin exchange-traded funds have held up relatively well, with holdings declining only about 5% during the recent pullback and attracting more than $700 million in net inflows this week.

While political developments may have initially sparked the latest move, Fritz said the rally is increasingly being sustained by geopolitical hedging and growing institutional conviction in bitcoin.