Advertisement
Bitcoin’s Three-Month Rally Shows Signs of Fatigue as Profit-Taking Rises
- Bitcoin analysts suggest the cryptocurrency’s extended upward trend, which saw new all-time highs, may be concluding as momentum begins to weaken.
- BTC surged from US$55k in January to a peak of US$111,970 in May, currently trading around US$105,734 after recent declines in trading activity.
- Despite ongoing institutional investment through ETFs and corporate purchases, short-term holders are taking profits whilst derivatives activity cools significantly.
- Major corporate holders like MicroStrategy continue accumulating Bitcoin, with public companies purchasing 131,000 BTC in Q2 2025 alone.
Analysts say Bitcoin’s months-long rise, during which it reached new all-time highs (ATH), could be coming to an end – at least for now. Bitfinex analysts wrote in a recent report that for “the first time in that uptrend, momentum has begun to fade”.
In the first half of 2025, BTC went from as low as US$55k (AU$83.7k) in January to a new ATH of US$111,970 (AU$170,445) on 23 May. At the time of writing, it was trading at US$105,734 (AU$160,952), down 1.5% over the past 24 hours.
The most recent surge, as noted by analysts, was a 41% rally that took Bitcoin from US$74k (AU$112.6k) in early April to the current levels.
Related: PayPal Teams Up with Coinbase to Supercharge Crypto Buying for Millions of Australians
Acceleration Slowing Despite Institutional Interest
Order flow data and on-chain metrics now point toward a slowdown of this rally, “rather than continued vertical acceleration”, the analysts wrote.
The recent compression in price action reflects a cooling in both on-chain and derivatives activity, with declining spot volumes, reduced taker buy pressure, and a drop in open interest, highlighting that the market is transitioning from aggressive impulse to ranging phase.
Bitfinex Amid continued inflows in US spot Bitcoin exchange-traded funds (ETFs) and institutional interest in BTC, some long-term holders have taken profits and especially “short-term holders who rode the move from sub-$80,000 levels”.
The most recent data for the US ETFs shows 1 July saw some outflows, though data for BlackRock’s IBIT, the largest fund, isn’t available yet. The US BTC ETFs currently hold 1.247 million Bitcoin, which is 5.9% of all coins.
Large HODLers Keep Accumulating BTC
Meanwhile, MicroStrategy – Michael Saylor’s firm and the public company with the largest Bitcoin holdings – recently acquired another 4,980 BTC, bringing its total to 597,325 BTC. Metaplanet, which was one of the first to emulate Strategy, also bought another 1,005 BTC and holds 13,350 Bitcoin, making it the fifth largest public company holding BTC.
In Q2 of 2025 alone, public companies bought 131,000 BTC, growing their balances by 18%, while the ETFs grew by 8% – or 111,000 Bitcoin.
Analysts and investors alike are now eagerly watching events on the world stage for clues as to where BTC may be headed next.
Advertisement
CryptoQuant analyst Julio Moreno believes for now the sideways action may continue as the Bitcoin Bull Score remains firmly in neutral territory:
Read more: Senate Passes “One Big Beautiful Bill”: Crypto Tax Relief Nowhere in Sight
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
