Bitcoin continues to trade at record levels as it approaches $100,000. However, with this rise, profit taking has also accelerated in the markets.
According to Glassnode data, investors have made a total of $4 billion in profits over the past two days. Retail investors, or “shrimps,” sold about 75,000 BTC ($7 billion) in the process. This was the largest sell-off since Bitcoin passed $73,000 in March. Retail investors, often described as “smart money,” can sometimes have a market-changing effect.
So, who is buying these Bitcoins? “Big investors, known as those with assets between 100 and 1,000 BTC, added 140,000 BTC to their portfolios during the same period. Glassnode data shows that big players are viewing market corrections as an opportunity.
Different data sources paint a conflicting picture of the market. Over-the-counter (OTC) transactions have increased significantly along with the rise in Bitcoin price. According to CryptoQuant, OTC balances have increased by 20,000 BTC since Bitcoin surpassed $90,000 this week.
On the other hand, retail investors’ balances on exchanges dropped below 3 million BTC, the lowest level in the last two years. This shows that individual investors still show strong buying interest.
Although the possibility of a possible correction in Bitcoin is increasingly being talked about, the interest of institutional investors and the continuation of OTC purchases may continue to keep Bitcoin's price strong. In particular, profit-taking by retail investors is giving signals reminiscent of the peak movements at the beginning of the year, but with institutional support, this correction is expected to remain limited.