Bitcoin Sees Profit-Taking Around $70K Amid ‘Stubbornly Bullish’ Sentiment

On-chain data shows over 50% of Bitcoin supply remains inactive, a sign of strong long-term conviction in the asset.

AccessTimeIconJun 4, 2024 at 6:27 a.m. UTC
Updated Jun 4, 2024 at 8:11 p.m. UTC
  • Bitcoin price dipped to $69,200 amidst profit-taking and broader U.S. stock market movements.
  • Despite negative news, sentiment remains bullish due to long-term holder conviction and anticipation of further spot ETF approvals.

Bitcoin (BTC) slid to $69,200 early Tuesday amid profit-taking after briefly crossing the $70,000 level late Monday. Price action across major tokens was mixed.

BTC prices moved alongside broader U.S. stock markets, reflecting risky bets in the market. Some meme stocks and tokens jumped more than 100% on the apparent return of influential equity trader Keith Gill.

Crypto exchange Bitfinex said in a report on Monday that bitcoin’s slump since March was likely driven by long-term holders selling. However, blockchain data shows the trend has stalled, and investors are accumulating BTC.

On-chain analysis firm CryptoQuant shared with CoinDesk in a Tuesday report that 50% of the long-term bitcoin supply was “inactive,” showing no movements or changes in holdings across tracked wallets. This is considered a sign of strong long-term conviction, which may indicate further price gains.

As such, the sentiment around bitcoin’s continued growth remains “stubbornly bullish,” with Singapore-based QCP Capital seeing an increase in trading activity.

“The market remains stubbornly bullish in spite of negative headlines about Mt. Gox and the DMM hack last week, BTC rallied confidently above $69,000 in Asia,” QCP said in a broadcast message late Monday. “This bullishness is likely to continue as the market waits for the ETH spot ETF to usher in new demand.”

“Another reason for persistent bullishness is speculators increasing long positions in other crypto majors in anticipation of additional spot ETF approvals in the near future,” the firm said.

Elsewhere, ether (ETH) and dogecoin (DOGE) showed slight losses, while Cardano’s ADA and Solana’s SOL rose as much as 3%. The CoinDesk 20 (CD20), a broad-based index of the largest tokens minus stablecoins, is up 0.41% in the past 24 hours.

Among other larger tokens with a market capitalization above $1 billion, dog-themed floki (FLOKI) and synthetic dollar project Ethena’s ENA tokens rose more than 10%.

Edited by Parikshit Mishra.


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Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.