Bitcoin’s climb to a one-month high near $74,000 earlier this week triggered a sharp round of profit-taking from short-term traders, according to on-chain data from CryptoQuant.
The leading cryptocurrency has since pulled back and is trading around $69,000 after losing momentum following Wednesday’s move above the $70,000 mark.
CryptoQuant analyst Darkfost noted that short-term holders moved more than 27,000 BTC — roughly $1.8 billion — to exchanges in profit during the past 24 hours, marking one of the largest bursts of selling activity seen in recent months.
Currently, the only short-term investors still in profit are those who accumulated Bitcoin between one week and one month ago, with an estimated realized price near $68,000. That suggests some recent buyers opted to secure gains rather than extend their positions.
Short-term holders are typically the most reactive participants in the market, and the latest selling highlights ongoing caution amid geopolitical tensions involving Iran.
Earlier in the week, analysis from CoinDesk warned that price action could resemble January’s move when bitcoin briefly surged to $98,000 before quickly reversing lower, creating what some analysts described as a potential bull trap.
That downside move unfolded on Friday and was amplified by comments from Donald Trump calling for Iran’s unconditional surrender — remarks that also helped drive oil prices sharply higher.
Despite the recent wave of selling, broader factors continue to support bitcoin’s rally, according to Adrian Fritz, chief investment strategist at 21Shares.
Fritz said traders are increasingly speculating that the Clarity Act — a proposed U.S. digital-asset market structure bill — could pass before the end of the year. Prediction markets currently estimate the probability of passage at around 70%, although Fritz noted that these markets remain relatively illiquid.
He also highlighted rising geopolitical tensions and continued institutional demand as key forces supporting the market.
Some investors are beginning to treat bitcoin as a “gold beta” trade, rotating into the digital asset following the recent rally in Gold. Meanwhile, spot bitcoin exchange-traded funds have shown resilience, with holdings down only about 5% during the latest pullback while still recording more than $700 million in net inflows this week.
According to Fritz, while political developments may have helped spark the latest move, the rally is increasingly being supported by geopolitical hedging and strengthening institutional conviction in bitcoin.
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