Veteran Traders Sit on Record Profits as Market Enters Deleveraging Phase
Veteran Bitcoin traders are sitting on record-high unrealized profits, nearly three times higher than their peak in 2021. This is according to a recent analysis, driven by spot Bitcoin ETF inflows and digital asset treasury companies absorbing supply. As a result, the market has entered a deleveraging phase, with Bitcoin trading near prices from two years ago.
While leverage in futures has decreased, it remains elevated due to ETF activity. However, signs of increased buying by long-term holders suggest some veteran traders may be preparing for a potential rebound. This is not yet a definitive signal of a market bottom, but rather a cautious indication that some investors are anticipating a change in trend.
The recent volatility has led to $122 million in long positions being liquidated, with Bitcoin dipping below $63,000 before recovering slightly above $64,000. Total crypto liquidations reached $227 million, reflecting increased market uncertainty.