Bitcoin (BTC) investors have ramped up profit-taking activity following a classic technical signal known as the golden cross, confirmed on May 22. On this day, Bitcoin’s 50-day simple moving average (SMA) crossed above its 200-day SMA, a bullish indicator suggesting sustained upward momentum. Historically seen as a signal of long-term price appreciation, the golden cross this time coincided with a significant milestone, Bitcoin briefly surged above $111,000, its all-time high, according to CoinDesk data.

However, rather than encouraging long-term holding (HODLing), this bullish signal appears to have triggered a wave of realised profit-taking by BTC holders. Data from blockchain analytics firm Glassnode shows that the market is shifting into a distribution phase, with on-chain profits being locked in at an accelerated rate.

Realised Profits Cross $500M Per Hour

In the days following the golden cross, entity-adjusted realised profits have spiked above $500 million per hour on three separate occasions within a 24-hour period, marking the most intense profit realisation since early February 2025. This metric, which excludes self-to-self wallet transfers and focuses only on economically meaningful transactions, captures the total USD-denominated profit of BTC that moved on-chain.

Glassnode’s data shows that the uptick in realised gains reflects renewed investor interest in de-risking, especially after the record high prices. The analytics firm noted in its weekly report:

“The recent ATH breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit. Fewer than 8% of trading days have been more profitable for investors.”

The sentiment here is clear: investors, seeing historically rare profit conditions, are choosing to take chips off the table.

SOPR Confirms Shift to Profit-Taking Mode

Supporting this trend is another important on-chain metric, the entity adjusted Spent Output Profit Ratio (SOPR). This ratio measures the average profit or loss of coins moved on-chain over a certain period. When the SOPR value is above 1, it suggests that investors are, on average, selling their BTC for more than they bought it.

Since late May, SOPR has been steadily trending above 1, with its entity-adjusted version showing real economic activity rather than internal exchange movements. This confirms a broad shift in investor sentiment: even though BTC is hovering around all-time highs, the market is seeing reduced conviction for holding, and a tilt toward profit realisation.

Contextualising the Current Profit Cycle

While the profit-taking activity is notable, Glassnode clarified that current levels are not yet at extremes historically seen during major price tops. This implies that while investors are booking profits, they may not be anticipating an imminent market reversal.

As of this writing, Bitcoin is trading at $105,600, down slightly from its peak but still maintaining strong support. A contributing factor to the ongoing bullish sentiment may be political and institutional developments. Reports have surfaced that Donald Trump’s Truth Social platform is exploring a potential Bitcoin ETFBitcoin Price Falls Amid ETF Outflows, Liquidations and Waning Demand offering, aimed at giving mainstream retail investors easier access to the digital asset.

Bitcoin’s golden cross has historically signalled a bullish phase, and the price action on May 22 reaffirmed that narrative with a new all-time high. However, the immediate response from investors has been one of caution, opting to lock in significant profits rather than ride the potential next leg up.

With over $500 million per hour in realised profits and an average 16% return on coins moved, Bitcoin is currently experiencing one of its most economically active profit cycles in recent months. Yet, metrics suggest that the situation hasn’t reached an overheated state, potentially leaving room for further upside in the mid to long term, especially if macro and political developments continue to favour crypto adoption.