Over the last few days, Bitcoin has displayed remarkable price performances and resilience, surpassing its previous all-time high of $108,000, achieved last December. However, many investors continue to face a setback as BTC’s profitability decreases significantly.

Investors See Reduced Gains As Profitability Shrinks

In spite of a recent notable surge in prices, Bitcoin’s profitability has turned negative, reflecting a shift in market dynamics. The negative development was outlined by seasoned market expert and verified author Axel Adler Jr. in a post on the X (formerly Twitter) platform.

Data from Axel Adler reveals that Bitcoin’s average realized profit has fallen from $146 million to about $62 million, representing a more than 50% decline. The drop may imply that short-term traders are locking in lesser gains while long-term holders persistently exercise caution. Furthermore, a decline in average realized profit signals a cooling period for the flagship asset.

Even though they are average, Adler claims these are still high levels, with absolute values being significantly higher. However, the market will begin to cool down at the current levels if the average figure drops below $40 million.

This sharp drop comes in light of upward momentum as BTC surged to new levels, raising questions about the sustainability of its uptrend. Nonetheless, crypto enthusiasts remain optimistic about BTC’s short-term an

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Author: Godspower Owie