Bitcoin Holders Cashing Out After Golden Cross: Is the Bull Run Cooling?

Bitcoin Holders Take Profits After Golden Cross Signal

Bitcoin (BTC) investors are increasingly locking in gains after a "golden cross" pattern emerged on May 22nd. This technical indicator, where the 50-day simple moving average surpasses the 200-day simple moving average, is often seen as a bullish signal. However, recent on-chain data suggests a shift in investor sentiment.

Profit-Taking Spikes

Data from Glassnode indicates a significant increase in entity-adjusted realized profit. On several occasions recently, hourly cashouts exceeded $500 million, demonstrating intense profit-taking activity. This level hasn't been seen since early February.

SOPR Confirms the Trend

The entity-adjusted Spent Output Profit Ratio (SOPR) further supports this observation. This metric, which tracks the profit level of moved coins while filtering out transactions between addresses of the same entity, shows that the average coin moved recently captured a +16% profit.

Key Takeaways:

• Golden Cross Followed by Profit-Taking: Despite the bullish signal, investors are choosing to realize profits.
• Significant Cashout Volume: Hourly cashouts exceeding $500M indicate considerable activity.
• SOPR Reflects Profitability: Coins moved are capturing significant gains.

Market Context

While profit-taking is underway, Glassnode reports that it's not as extreme as seen during previous major price-topping events. Bitcoin is currently trading around $105,600. The market is also reacting to news of Donald Trump's Truth Social platform potentially offering a Bitcoin exchange-traded fund to retail investors.