Bitcoin rose to a one-month high of $74,000 this week, triggering a wave of profit-taking among short-term traders, data from CryptoQuant showed.
The largest cryptocurrency lost momentum after breaking above $70,000 on Wednesday and is currently trading around $69,000.
CryptoQuant analyst Darkfost explained that short-term holders moved more than 27,000 BTC ($1.8 billion) to exchanges in the past 24 hours and profited, one of the largest increases in recent months.
The only short-term investors currently profiting are those who accumulated Bitcoin a week to a month ago, with the actual price at around $68,000, suggesting some near-term buyers are choosing to lock in gains rather than expand their positions.
Short-term holders are typically the most reactive group in the market, and their selling reflects continued caution over Iran’s ongoing war.
CoinDesk analysis on Wednesday identified a potential bull trap as price action mirrored what happened in January, when prices broke above $98,000 before falling again.
Oil prices soared on Friday after U.S. President Donald Trump’s comments calling for Iran’s unconditional surrender accelerated a decline in oil prices.
Adrian Fritz, chief investment strategist at 21Shares, said that despite profit-taking, broader factors are helping support Bitcoin’s rebound.
Fritz said traders are increasingly betting that the Clarity Act, a U.S. digital asset market structure bill, could be passed before the end of the year. Prediction markets currently price probabilities around 70%, although Fritz noted that these markets are relatively illiquid.
He also cited rising geopolitical tensions and strong institutional demand as key drivers.
Some investors are increasingly viewing Bitcoin as a “gold beta” trade, turning to the asset following gold’s recent rally. Meanwhile, spot Bitcoin ETFs have shown resilience, with holdings falling only about 5% during the latest pullback, with net inflows exceeding $700 million this week.
While political developments may have helped spark the move, Fritz said geopolitical hedging and growing institutional confidence in the asset were supporting the rally.
