Bitcoin Rally Faces Profit-Taking as Short-Term Holders Deposit 467K BTC to Exchanges

Bitcoin's recent rally is facing profit-taking pressure as short-term holders have transferred approximately 467,000 BTC ($35.4 billion) to exchanges since August 17.

This increase in exchange deposits comes after Bitcoin tested the $82,000 level and institutional demand for spot ETFs remains strong.

CryptoQuant data shows that profitable coins now dominate exchange flows, with around 92% of the inflows being in profit since August 20. This shift is a key distinction from earlier periods when exchange deposits were often driven by holders selling at a loss.

The daily flow of Bitcoin to exchanges has increased to approximately 27,500 BTC per day, which is about 29% higher than the previous three-month average. Despite this, demand for spot ETFs remains strong, with around $730 million flowing into these products during the latest trading session.