Bitcoin slips to $109K as short-term holders take $11.4B in profits

• Bitcoin slipped to $109,000 Monday amid sluggish Memorial Day trading, but remains up 1.7% in 24 hours.
• Short-term Bitcoin holders realized $11.4 billion in profits over the past 30 days, intensifying selling pressure.
• A temporary US delay on 50% EU tariffs (until July 9) spurred overnight gains in crypto and European stocks.

Bitcoin experienced a slight pullback to $109,000 on Monday, May 26th, navigating sluggish trading conditions as traditional US markets remained closed for the Memorial Day holiday.

Despite this minor dip, the premier cryptocurrency maintained a position of strength, holding onto gains from a gentle weekend rise and remaining tantalizingly close to the all-time high it achieved just last week.

While Bitcoin consolidated, the broader digital asset market saw pockets of notable activity.

The CoinDesk 20 index, which tracks the top 20 digital coins (excluding stablecoins, memecoins, and exchange tokens), highlighted decentralized exchange Uniswap (UNI) as the day’s standout performer, with its token surging 6.6%.

Tokens for Chainlink (LINK) and Avalanche (AVAX) also posted respectable gains of 3.3% and 3.4%, respectively.

These gains largely materialized overnight, receiving a boost from a shift in US trade policy rhetoric.

President Trump announced on Sunday that the implementation of proposed 50% tariffs on EU goods would be delayed until July 9.

This was a reversal from his statement on Friday, which had called for the tariffs to take effect on June 1 and had consequently triggered a sell-off in risk assets, including cryptocurrencies.

European stocks, initially shaken by the tariff threat, rebounded on this news of a temporary reprieve.

Profit-taking wave: short-term holders cash in

Despite the overall positive sentiment that has recently propelled Bitcoin near record highs, analysts suggest the cryptocurrency may have entered a more volatile, consolidatory phase. T

raders are currently digesting the rapid, nearly 50% surge from the lows seen in April, according to a Monday report from Bitfinex analysts.

A significant factor potentially capping Bitcoin’s immediate upside is an intensification of profit-taking by short-term holders.

The Bitfinex report highlighted that this particular cohort of investors has realized a substantial $11.4 billion in cumulative profits over the past 30 days.

This figure stands in stark contrast to the $1.2 billion in profits realized by the same group in the preceding 30-day period, indicating a significant ramp-up in cashing out gains.

“At these levels, the risk emerges that profit-taking outpaces new demand inflows,” the Bitfinex analysts wrote.

Unless thereʼs a corresponding rise in new capital entering the market to absorb this supply, prices may begin to stall or even retrace.

Navigating choppy waters

The coming days are seen as crucial in determining Bitcoin’s near-term trajectory.

“The next few days will be key to gauge whether the dip to $106,000 has set the range lows or a bigger reset is in the cards,” the Bitfinex report stated.

Should a more significant pullback materialize, a key level of support to monitor is the short-term holder cost basis, which currently sits around $95,000.

This represents the average price at which this group of investors acquired their Bitcoin.

Despite the potential for near-term choppiness and profit-taking, the underlying outlook remains constructive, according to the analysts.

They pointed to strong inflows into US spot Bitcoin ETFs—totaling an impressive $5.3 billion in May so far—alongside currently low market volatility and a lack of excessive speculative froth.

These factors, they argue, suggest that Bitcoin is likely to resume its upward trend heading into the third quarter of the year, following this potential period of consolidation.