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

Bitcoin price fell to $69,200 due to profit-taking and broader US stock market movements.

Despite the negative news, sentiment remains bullish due to long-term investor sentiment and expectations of further spot ETF approvals.

Bitcoin {{BTC}} briefly surpassed the $70,000 level late Monday before falling to $69,200 early Tuesday amid profit taking. Price movements among major tokens were mixed.

BTC prices have moved in tandem with broader US exchanges, reflecting risky bets in the market. Some meme stocks and tokens have surged more than 100% on the apparent return of influential stock trader Keith Gill.

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

On-chain analytics firm CryptoQuant showed in a report shared with CoinDesk on Tuesday that 50% of the long-term bitcoin supply was “inactive” and there was no movement or change in tracked wallets. This is considered a sign of strong long-term belief, which could point to further price gains.

As such, sentiment regarding Bitcoin’s continued growth remains “stubbornly bullish” as Singapore-based QCP Capital sees an increase in trading activity.

“Despite negative headlines about Mt. Gox and the DMM hack last week, the market remains stubbornly higher, with BTC confidently moving above $69,000 in Asia,” QCP said in a broadcast message late Monday. “This rally will likely continue as the market waits for the ETH spot ETF to generate new demand.”

“Another reason for the continued rise is that speculators are increasing long positions in other cryptocurrency giants in anticipation of additional spot ETF approvals in the near future,” the firm said.

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

Other major tokens with market caps above $1 billion include dog-themed floki (FLOKI) and synthetic dollar project Ethena’s ENA tokens are up more than 10%.