FameEX Hot Topics | Analysts See Late-Stage Bull Market as Bitcoin Logs $1B in Daily Profits

Bitcoin’s ongoing rally is showing signs of strain as investor profit-taking dominates the market, according to a May 8 blog post from on-chain analytics firm CryptoQuant. The firm reported that realized profits are averaging around \$1 billion daily, raising concerns about the sustainability of the current bull market. Despite renewed momentum and rising institutional participation, CryptoQuant warns that persistent selling pressure could stall upward momentum or trigger a sharp correction.

Bitcoin recently approached \$98,000, marking a multi-month high and triggering a spike in realized profits. CryptoQuant draws parallels to late 2024, when Bitcoin surpassed its prior all-time highs and briefly hit \$100,000. According to analyst Kripto Mevsimi, profit-taking remains elevated following the March–April 2025 rebound, though not as extreme as during the sell-off from November to December 2024. Nevertheless, the behavior suggests that the market may be entering a late-stage bull phase.

Data from CryptoQuant shows that the seven-day average of realized profits has climbed to levels historically associated with local tops. Similar patterns emerged in 2021, when persistent profit-taking preceded temporary market peaks. While short-term gains remain possible, the continued dominance of profit-taking activity adds substantial downside risk.

Some analysts have argued that the rise of spot Bitcoin ETFs—such as BlackRock’s iShares Bitcoin Trust (IBIT)—has permanently changed the market landscape. IBIT has recorded net inflows for over 16 consecutive days. However, CryptoQuant remains unconvinced that this influx of institutional capital has altered underlying investor behavior. The firm argues that even with the growing involvement of large financial players, individual trading psychology has not fundamentally changed.

“Since spot ETFs launched in January 2024, the market structure has evolved, but investor psychology hasn’t,” Kripto Mevsimi concluded. Despite institutional interest, the emotional cycles of fear and greed continue to dictate market action. As a result, Bitcoin remains vulnerable to volatility, even as it gains broader mainstream adoption.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.