"Sharp fluctuations have subsided…Bitcoin sees 'quiet profit-taking' led by institutions"

Recently, there has been analysis suggesting that unlike in the past, Bitcoin (BTC) rallies are continuing without a sharp drop caused by clear profit-taking.

According to the on-chain analysis platform CryptoQuant, on the 29th, Onchain School analyst explained in a QuickTake report, "Looking at Bitcoin's Net Realized Profit/Loss (NRPL) metric, there hasn't been excessive profit-taking observed during the recent rally." This indicates a different pattern compared to the profit-taking behaviors that triggered sharp declines in the past.

The analyst noted, "Although there was substantial profit-taking after April 20, it occurred in a controlled manner without large-scale sell-offs that would shock the market," and added, "Recently, as the proportion of institutional investors has increased, profit-taking is happening in a more systematic and strategic way."

They also pointed out that "market volatility is gradually decreasing," and stated, "This could be a result of tighter crypto regulations suppressing speculative 'pump and dump' schemes seen in the past."

The analyst mentioned, "Looking at previous cases, short-term corrections generally followed profit-taking," and advised, "Investors should continue to remain cautious."