Will Bitcoin’s Rally Be Stopped by Institutional Profit-Taking? Find Out! 🚀💰

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It appears that our long-term Bitcoin (BTC) holders, those stalwart knights of the digital realm, are beginning to take a little profit as the price flirts with the tantalizing $120,000 mark. One can almost hear the clinking of coins as they cash in their chips!

This has ignited a veritable bonfire of speculation regarding whether this is merely a case of cautious profit-taking or the harbinger of a more ominous trend. The suspense is positively Dickensian!

Incoming Correction? Or Just a Spot of Nonsense?

According to the oracle known as CryptoQuant, our long-term holders have flipped net negative at this pivotal resistance level. It seems some are cashing out after a delightful jaunt through previous bull cycles. While the overall selling pressure remains as moderate as a Sunday afternoon tea, one particular player has caught the eye – Galaxy Digital, the financial equivalent of a peacock strutting about.

Reports suggest that this firm has offloaded a staggering 80,000 BTC, which points to institutional activity rather than the frantic selling of your average retail investor. One can only imagine the boardroom discussions: “Shall we sell, or shall we hold?”

This raises the tantalizing question of whether this is merely a short-term adjustment or the early signs of a broader de-risking. CryptoQuant has speculated that such actions could prompt other large holders to follow in Galaxy’s rather ostentatious footsteps. After all, who doesn’t want to be part of the latest trend?

While one could argue that this is simply prudent profit-taking after a historic rally, the behavior of investors at these dizzying heights may very well set the tone for Bitcoin’s next grand adventure.

In yet another twist of fate, CryptoQuant has discovered that US demand for Bitcoin may be cooling, as indicated by the rather disheartening signals from the Coinbase Premium Index. The index has recently taken a nosedive, suggesting that US-based participants are showing less enthusiasm for acquiring Bitcoin at current price levels. How positively tragic!

It’s worth noting, however, that the index remains in positive territory, which means a premium still exists, albeit a rather modest one compared to previous accumulation phases. It’s like finding a half-eaten biscuit in the pantry – not quite what you were hoping for, but it’ll do in a pinch!

This softening stands in stark contrast to past patterns where demand surged when Bitcoin traded below $105,000. Those were the days when US investors would pounce like cats on a laser pointer! Now, it seems they are adopting a rather cautious wait-and-see approach, perhaps holding out for lower prices like a child waiting for dessert.

Historically, US demand has played a crucial role in the crypto asset’s upward momentum. When the premium index rises alongside price, it’s typically a bullish sign. But if the index slips into negative territory, it may reflect a weakening in one of the market’s most influential buyer segments. A bit like a soufflé that refuses to rise, really.

Liquidity Metrics Paint Strong Bull Case

Amid the swirling clouds of concern over weakening US demand and long-term holders cashing out, some voices remain as confident as a cat in a room full of rocking chairs regarding Bitcoin’s strength.

Vtrader Founder Steve Gregory, a man of considerable insight, believes that Bitcoin is poised for another significant upward move following recent positive trade developments and strong market momentum. One can almost hear the trumpets blaring!

In a statement to CryptoPotato, Gregory declared that the “next move this week is up,” predicting a climb to $139,000. While he acknowledges that the path won’t be as straight as a ruler, Gregory added that current momentum feels like “peak cycle gains.” One can only hope he’s right!

“Bitcoin being an indicator of global liquidity is becoming more of a credible narrative. If the bitcoin price is just a marker of global liquidity via M2 and global liquidity relative to Bitcoin supply has reached a 12-year high, with ~$5.7 million in global M2 supply per Bitcoin in circulation. This is a very strong bull case that we have more room to run in this bull market.”

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2025-07-29 13:47