Bitcoin (BTC) Market Heats Up as Traders Realize $5B in Profits, But Uncertainty Looms

The cryptocurrency market was electrified recently as Bitcoin [BTC] traders celebrated a remarkable $5 billion in realized profits in a single day.

Bitcoin [BTC] traders celebrated a remarkable $5 billion in realized profits in a single day, highlighting an increased pace in the cryptocurrency market, driven by renewed investor confidence.

Nearly $5 billion in #Bitcoin $BTC profits were realized yesterday!

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However, behind great profits often stands the ghost of uncertainty. These have been massive sell-offs, which, historically, have most often ended in increased market volatility or potential price pullbacks. In this trend, at the time of writing, Bitcoin is changing hands at $105,148, with a 24-hour trading volume of $27.21B, a Market cap of $2.08 T, and a Market dominance of 56.91%. The BTC price is up 0.42% in the last 24 hours.

The accumulation of Bitcoin by large investors has been a leading narrative since the U.S. Presidential elections. Their holdings have surged from 16.2 million BTC to 16.4 million BTC, reflecting the growing dominance of institutional players in the market. This huge buildup reinforces the notion of long-term confidence and illustrates the potential of these players to shape Bitcoin’s price trajectory.

On the other side, retail investors are fleeing from the market. Their total holding have decreased from 1.75 million BTC to 1.69 million BTC in the same period. This may indicate a cautious attitude from the smaller investors, probably because of Bitcoin’s recent high volatility. The gap between institutional and retail investors indicates a very clear picture: the former are setting the pace and leading price momentum. At the same time, reduced participation by the latter may curtail further upward pressure.

Large investors are driving Bitcoin price gains since the US election.

Holdings grew from 16.2M to 16.4M BTC.

Meanwhile, small investors reduced theirs from 1.75M to 1.69M.

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Bitcoin Transactions Surge as Trades Double

Another key development has been the surge in high-value Bitcoin transactions, with the number of trades above $100,000 more than doubling within a week from 15,620 to 32,320, indicating a wave of heightened market activity. Such a dramatic increase could only mean that either institutional players or high-net-worth individuals are actively trading, further underlining the importance of Bitcoin as a tool for large-scale value transfers.

The number of #Bitcoin $BTC transactions over $100,000 has doubled in the past week, rising from 15,620 to 32,320.

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Notably, the 7-day transaction high of 30,320 hints at growing confidence in Bitcoin’s utility beyond speculation. However, whether these metrics reflect sustained long-term optimism or a flurry of short-term speculative trading remains uncertain.

Bitcoin’s price is currently consolidating around $104,000, with support established at $92,210 and resistance looming at $106,143. The recent $5 billion profit-taking spree has shifted short-term momentum toward sellers, but market indicators paint a mixed picture.

The Relative Strength Index (RSI), currently at 60.82, suggests neutral momentum, leaving room for both bullish and bearish scenarios. BTC’s repeated failure to break above the $106,000 resistance level highlights a need for stronger catalysts to maintain upward momentum. This resistance has become a psychological and technical barrier that Bitcoin must overcome to continue its rally.

The participation ratio is yet another vital indication of market activities and sheds more light on the Bitcoin trend. While the positive participation ratios are reflective of the entry by new participants that drives the liquidation and momentum, the negative ratios reflect exits by players that may finally make a shift toward resistance.

Understand these metrics, which are essential to identify some key support and resistance levels, especially the $104,000-$106,000 range. This zone could determine Bitcoin’s near-term future, acting as either a springboard for further gains or a ceiling that stalls momentum.

Related | Bitcoin’s Holders Drive Market Momentum: What to Expect in 2025