On May 21, 2025, Bitcoin reached a historic peak in its price, surprising some traders in the process. Despite the record-high value, traders remained cautious, lacking the typical sense of celebration that often accompanies such milestones.
Profit-taking at this unprecedented high was strikingly low, especially when compared to the surge that followed Bitcoin’s breakthrough past the $30,000 mark in early 2024, as well as the $50,000 level later that same year. Although the price soared on May 21, the atmosphere felt muted and restrained.
Lower Realized Profits Amid Rising Prices
According to on-chain data, when Bitcoin first entered six-figure territory in December 2024, realized profits surged to approximately $2.10 billion. In contrast, the profit-taking during this recent all-time high amounted to around $1.00 billion, representing less than half of the profits observed in December 2024.
This notable difference is particularly striking given the higher price point reached this time around. Market participants, especially those holding long-term assets, appear reluctant to sell into this strength. Historically, such massive price increases have prompted rapid profit-taking. Yet, surprisingly, current activity hints at significant restraint.
Shift in Coin Age Distribution Indicates Changing Behavior
The behavioral shift becomes evident when analyzing the age distribution of active coins. In May 2025, coins aged under one month represented 76.9% of the trading volume, a sharp increase from 44.6% in December 2024. Conversely, coins held for over six months constituted only 13.4% of the volume, down from 24.7% during the December rally. The trend is clear when arranged in a list format—from the coins held less than one month to those held for more than six months.
This stark change highlights a significant behavioral transformation: current price movements are largely driven by short-term traders and newcomers, while longer-term holders are largely choosing not to sell. In the cryptocurrency market, moving older coins often indicates profit-taking or market anxiety. The current inactivity suggests a more bullish sentiment and increased confidence among long-term investors.
ETF Inflows Strengthen Institutional Confidence
Adding to the positive sentiment, Bitcoin-targeted spot ETFs continue to show robust inflows. On May 21, net inflows reached $609 million, marking the seventh consecutive day of positive flow into these investment vehicles. This reflects a significant shift in sentiment regarding spot Bitcoin ETFs, which were previously seen as unlikely to succeed.
These inflows are significant not just for their volume but also for what they represent: a steady stream of institutional capital entering the market, even at elevated prices. Together with the observation of reduced profit-taking and a collective determination among both retail and institutional investors to hold their assets, this paints a picture of a market confidently supported by various stakeholders.
Conclusion: Strong Momentum Fueled by Investor Restraint
The current price rally is marked by a rare sense of calm among long-term Bitcoin holders. Rather than rushing to cash out their gains, seasoned investors appear to be maintaining their positions, expressing confidence in Bitcoin’s future. The vast base of these investors seems to ensure that the activities of short-term traders—who appear to be the main influencers of current market momentum—do not destabilize the overall market. And it is noteworthy activity!
In summary:
- Realized profits during the latest peak are significantly lower than those seen previously.
- Long-term holders are opting to maintain their positions, allowing their profits to accumulate.
- Short-term traders are actively engaging in profit-taking, influencing current price trends.
- Institutional interest is substantial, highlighted by strong inflows into Bitcoin ETFs.
This combination suggests that the market may still have room for growth. Unlike the previous bull run characterized by exuberance and frantic profit-taking, the current environment appears more composed and strategically measured.