Bitcoin Rally Faces Profit-Taking Pressure Amid $35 Billion Exchange Deposits

Bitcoin's recent rally is facing pressure from profit-taking activity as short-term holders have deposited approximately 467,000 BTC to exchanges since August 17. The total value of these deposits amounts to around $35.4 billion.

The shift in market conditions comes as Bitcoin recently tested the $82,000 level and institutional demand through spot ETFs remains strong. However, the increased profit-taking activity is not entirely surprising given that short-term holders have been sending approximately 27,500 BTC per day to exchanges, which is about 29% higher than the previous three-month average.

CryptoQuant's data shows a substantial change in the profitability of Bitcoin entering exchanges. Since August 20, around 92% of exchange inflows have been profitable coins, up from just 35% when Bitcoin was trading below the short-term holder realized price.