Emily Walker
In recent days, Bitcoin has shown impressive price movements, even breaking its previous record of $108,000 set last December. Despite this success, a number of investors are experiencing challenges as BTC’s profitability has notably declined.
Declining Profitability Affects Investors
Amid the recent price increase, Bitcoin’s profitability has dipped into the negative, indicating a transformation in market trends. Renowned market analyst Axel Adler Jr. highlighted this in a post on X (formerly Twitter).
According to Adler, Bitcoin’s average realized profit has plummeted from $146 million to around $62 million, marking a decrease of over 50%. This decline suggests that short-term traders are securing smaller gains, while long-term holders remain cautious. Moreover, a drop in average realized profit implies a cooling phase for Bitcoin.
Adler notes that despite these averages, the absolute profit figures remain relatively high. However, he warns that if the average profit falls below $40 million, the market may cool further.
This sharp downturn comes amidst BTC’s rise, which raises questions about how sustainable this upward trend is. Still, many crypto enthusiasts remain hopeful about Bitcoin’s potential, believing the asset has yet to hit its peak for the current cycle.
Bull Market for BTC Remains Strong
Market expert and trader Mags has analyzed BTC’s price movements and has identified a timeframe for when Bitcoin might reach its peak for this market cycle. His insights come as community speculation grows about Bitcoin hitting its market high.
Mags’ forecast is grounded in historical patterns, which show that Bitcoin tends to peak 230 to 330 days after surpassing its last all-time high. In the previous cycles of 2016-2017 and 2020-2021, Bitcoin reached market tops in 233 days and 328 days, respectively, after breaking its prior records. In the current 2024-2025 cycle, Bitcoin has recently exceeded its former peak.
With this new recent high, Mags suggests that Bitcoin could hit its market top sometime in 2025, likely between July and October. He predicts this peak could see Bitcoin’s price reaching $305,000.
Currently, Bitcoin’s venture to a new all-time high has experienced some volatility, recently dropping to $102,700, with a nearly 3% decline in the last day. The bullish mood appears to be fading, with daily trading volume decreasing by over 21%.