Bitcoin Drops to $109,000 as Short-Term Holders Cash Out $11 Billion
Bitcoin (BTC) fell to $109,000 on Monday after a weekend rise, with U.S. markets closed for Memorial Day. Despite this, BTC is up 1.7% in the last 24 hours, close to its all-time high.
Key movements in the CoinDesk 20 index include:
- Uniswap (UNI) +6.6%
- Chainlink (LINK) +3.3%
- Avalanche (AVAX) +3.4%
The gains were influenced by the Trump administration delaying the implementation of 50% tariffs on EU goods, which had previously sparked a sell-off in risk assets.
Short-term Holder Profit-Taking Intensifies
Analysts at Bitfinex noted that BTC may experience volatility as traders react to a nearly 50% increase since April lows. Increased profit-taking among short-term holders has resulted in $11.4 billion in profits over the past 30 days, compared to $1.2 billion previously.
Concerns arise that if profit-taking exceeds new demand, BTC prices could stall or decline. Analysts suggest monitoring the next few days to determine if the dip to $106,000 establishes lower price limits. A deeper pullback could target a cost basis of around $95,000, the average price paid by short-term holders.
In May, U.S. spot bitcoin ETFs saw inflows of $5.3 billion, indicating low volatility and suggesting BTC could resume its upward trend into Q3.