Bitcoin’s (BTC) recent price surge has been underpinned by aggressive accumulation from investors, with over 66,975 BTC—valued at more than $7.2 billion—withdrawn from exchanges. This movement into private wallets reflects increasing investor confidence and suggests a long-term bullish outlook. The drop in exchange balances typically reduces selling pressure and hints at continued upward momentum, fueled in part by FOMO and institutional conviction.
Juan Pellicer, VP of Research at Sentora, emphasized that broader macroeconomic factors are also driving Bitcoin’s gains. “Investors’ willingness to reach for risk has been shaped by looser financial conditions—falling inflation, easing monetary policy, weakening dollar, and rising global liquidity,” he explained. These conditions have bolstered all risk assets, including Bitcoin, which has maintained a strong correlation with the S&P 500.
Profit Margins Reach Overheated Levels
On-chain data indicates that Bitcoin’s momentum remains solid. The Trader Realized Price and Profit/Loss Margin have spiked, signaling that many investors, especially those who bought 1–3 months ago, are holding unrealized gains. This adds to the bullish sentiment, but it also presents a risk.
Julio Moreno, Head of Research at CryptoQuant, cautioned that short-term holders may soon take profits. “Profit margins are nearing 40%, which historically signals overheated levels. This could lead to short-term selling pressure,” he noted. As of late May, estimated on-chain profit margins hovered around 31%, highlighting the potential for some consolidation.
BTC Eyes $115K Amid Volatility Risks
Bitcoin ended May with a 14% gain, peaking at a new all-time high of $111,980 before pulling back slightly to around $108,258. With $110,000 acting as a key resistance level, the coming days are crucial. Sustained accumulation in June could drive prices higher, possibly pushing past $115,000.
Despite concerns over short-term corrections, Bitcoin appears resilient. The traditional “Sell in May and go away” strategy hasn’t held up, and Bitcoin’s correlation with strong-performing equities suggests continued momentum. If profit-taking remains limited, Bitcoin could cement $110,000 as a new support level, reinforcing its bullish trajectory into the summer.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Bitcoin (BTC) Eyes $200K in 2025 After Clear Breakout Signal from ‘Cleanest Trend Indicator
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
