Contrary to bearish expectations, Bitcoin’s $80,000 mark appears bullish as onchain data suggests profit-taking is occurring. On Sunday, Bitcoin’s net realized profits surged to a monthly high of $207.56 million, according to analytics firm Santiment.
This spike occurred just after Bitcoin briefly surpassed the $80,000 threshold for the first time since January, dipped below it by late Monday, and then climbed back above that level during Tuesday morning in Asia.
Such an increase in realized profits amid a rally suggests that holders are capitalizing on gains while new investors are entering at current prices. This shift affects the market’s underlying structure, as ‘cost basis’—the original purchase price of coins held by individuals—plays a crucial role in their future actions when prices change.
Older holders selling for around $80,000 transferred their holdings to buyers willing to pay this price, thereby raising the network’s average entry point. This creates a layer of investors whose break-even points are near current levels, making them prone to panic if prices fall. However, new entrants at these levels are less likely to sell off during typical downturns.
The magnitude of the $207 million profit-taking also aligns with a bullish outlook. Such figures have not reached all-time highs; cycle tops often see realized profits in the billions followed by rapid market corrections. This pattern was absent here, suggesting strength rather than weakness.
These findings are consistent with recent options-market trends reported by CoinDesk. Despite the breakout, volatility markets continue to favor protective measures against drops over bets for sharp increases, indicating persistent caution among traders. However, there’s also an uptick in demand for cost-effective call ratio trades, which thrive on steady upward movements rather than explosive spikes.
The future of this breakout may hinge on broader macroeconomic factors, such as the deteriorating Iran-U.S. ceasefire and upcoming economic reports like Tuesday’s strategy earnings and Friday’s April nonfarm payrolls. These could potentially counteract current positive signals from onchain data.