Bitcoin’s Wild Ride: Traders Cash In $11.6B While We All Hold Our Breath! 😱💰

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Key takeaways:

  • Short-term Bitcoin holders are feeling richer than a Kardashian with a whopping $11.6 billion in profits over the last 30 days. Can we get a collective “whoa”? 💸

  • Technical indicators are showing signs of cooling off, like a hot date that suddenly gets awkward. Retail investor sentiment has plummeted to a 90-day low, and liquidity data is hinting at some serious price drama. 🎭

Bitcoin (BTC) recently hit a jaw-dropping all-time high of $111,800, but hold onto your hats, folks! The bullish momentum might be taking a little nap, as onchain data from Glassnode reveals that short-term holders (STHs) are cashing in their chips. Sounds like a market “breather” is on the horizon! 😴

According to Glassnode, these STHs—who are basically the day traders of the crypto world—have raked in a staggering $11.6 billion in profits over the last month. This follows a sharp rebound in Bitcoin’s price, which has now surpassed the STH cost-basis of $93,000. Profit-taking peaked at a dizzying $747 million daily, which is a big jump from the $1.2 billion realized in the previous month. Talk about a mood swing! 📈

The STH Realized Profit/Loss Ratio has skyrocketed, with profits now significantly outweighing losses. Only 8% of trading days have seen this ratio at a higher level. So, basically, it’s raining money! ☔️💵

This level of profit-taking is as common as a cat video on the internet during bullish trends, but it often signals a local market top. Too much profit-taking can overwhelm new demand, creating overhead supply resistance and putting the brakes on Bitcoin’s upward journey. 🚦

Crypto analyst Axel Adler Jr. noted that Bitcoin’s 30-day price momentum has already slowed by 38%, currently sitting at a chill 19%. He called it a “technical cooldown” after the recent peak. Sounds like the market needs a spa day before it can rally again! 🧖‍♂️

Meanwhile, Hyblock Capital is waving a caution flag, as the last three months have shown Bitcoin consistently targeting short liquidity zones above current prices. It’s like trying to catch a bus that’s always just out of reach! 🚌

However, retail sentiment is at a 90-day low, with only 31.59% of retail accounts holding long positions. Meanwhile, open interest is at a 90-day high, and combined order books are sitting pretty in the 91st percentile, signaling high liquidity and potential volatility. Buckle up! 🎢

Bitcoin open interest dropped by $1.2 billion as BTC fell under $110,000

Bitcoin took a nosedive, dropping to $108,000 from $111,300 just before the New York trading session opened on May 23. Thanks to US President Donald Trump’s announcement of a 50% tariff on European Union imports, effective June 1, 2025, the price dump sent shockwaves through the market. Talk about a plot twist! 📉

This price plunge resulted in a significant $1.2 billion open interest reduction in Bitcoin positions, signaling a wave of deleveraging as traders reduced their futures exposure. It’s like a game of musical chairs, and everyone is scrambling for a seat! 🎶

🚨LATEST: #Bitcoin open interest exhibits a $1.2 billion position flush after $BTC drops below $110,000.

— CryptoMoon Markets & Research (@CryptoMoonMT) May 23, 2025

Despite the initial sell-off, Bitcoin bounced back above $109,000, with speculators shrugging off the sell-off like it was just a bad hair day. Crypto trader Honey pointed out that any corrections could be potential buying opportunities. The trader said,

“Just like we expected, we pumped, and now that the golden cross has happened on BTC, we generally see a market-wide pullback. So I’d be cautious here. Dips are for buying.”

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2025-05-23 22:27