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▲ Bitcoin (BTC), Asia/ChatGPT generated image ©
The crypto asset market, which had been suppressed for several months, has finally begun to see a glimmer of profit realization. As the leading asset, Bitcoin (BTC), broke through $81,000, turning short-term investors profitable, massive institutional funds flowed back into spot Exchange Traded Funds (ETFs), initiating a battle to absorb selling pressure for a full-fledged bull market.
According to investment media FXStreet on May 7 (local time), crypto data analytics firm Glassnode diagnosed that the market structure is clearly stabilizing as Bitcoin surpassed both the true market average of $78,200 and the short-term investor's realized acquisition cost of $79,100. Notably, the 30-day simple moving average of investors' net realized profit/loss turned positive, recording 0.003% of the market capitalization. This is a key signal indicating that the market has moved beyond a continuous period of losses that lasted for weeks and entered the initial stages of profit realization across the board.
The market's attention is now focused on how well the newly incoming buying pressure can absorb the selling pressure from long-term holders. Glassnode's analysis shows that the realized profits of long-term investors who have held Bitcoin for more than one year increased to approximately $180 million per day based on a 14-day moving average. This level is similar to the distribution phase during past bull markets, meaning that long-term investors are gradually releasing their holdings to secure profits amidst the recent price recovery.
However, the scale of this supply outflow from long-term holders is still moderate compared to the peaks of past cycles. Nevertheless, short-term friction still exists in the market. This is because the volume of realized losses remains high at $479 million per day. Experts evaluate that this indicator must consistently fall below $200 million to be strong on-chain evidence that the market's selling pressure has been fully exhausted.
The most positive aspect is the spectacular return of institutional investors. The US Bitcoin spot Exchange Traded Fund market has passed through a long period of fund outflows, with its 30-day moving average net inflow turning clearly positive. Institutions that dumped massive amounts during the bear market from late 2025 to early 2026 are now re-entering the market as Bitcoin recovered from a low of $66,000 to the $80,000 level, creating strong institutional demand.
Amidst this fierce tug-of-war between profit-taking by long-term investors and buying from traditional institutional spot funds, Bitcoin is currently trading around $81,200, showing robust price defense with a slight increase of 0.2% over the past 24 hours.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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