Bitcoin Traders Sit on 21-Month Profit High as Selling Pressure Builds

Bitcoin traders are sitting on their highest unrealized profit margin in 21 months as spot demand begins to cool.

According to CryptoQuant, short-term holders have an unrealized profit margin of around 33%, the highest since December 2024.

This comes after a single-day total of $25.7 million in realized profits on September 22, the largest since 2026.

CryptoQuant still considers Bitcoin to be in a bull market with its Bull Score Index at an 'extremely bullish' 90 out of 100, but rising profitability creates a larger pool of potential sellers.

Bitcoin's rally has created its own selling pressure as traders have a strong incentive to lock in gains when marginal buying appears to be cooling. Spot Bitcoin demand has contracted recently, while growth in futures activity has also slowed.

The current profit margin is significant because it coincides with weakening demand and rising available supply. This makes the risk of accelerated profit-taking more substantial.

Bitcoin's price has struggled to sustain moves above $85,000-$87,000, with higher Treasury yields adding another obstacle.