BTC Investors Cash Out $1.7 Billion in Profits, Warning of Potential Price Drop
CryptoQuant data shows that Bitcoin (BTC) investors have been cashing out their profits after the explosive August rally. Approximately 110,000 BTC was disposed of in just a few weeks, with the largest single-day profit realization being 23,000 BTC on August 21.
This has historically been followed by substantial price corrections for the underlying asset. Analysts warn that if this trend continues, the asset's price could be primed for another correction.
CryptoQuant also highlighted another reason why BTC could be primed for a more profound correction: its spot demand has lost momentum and is now back in contraction. The Coinbase Premium, which measures the price difference between BTC on Coinbase and other trading platforms, has returned to slightly negative territory at -0.05.