Bitcoin has entered a significant correction phase with prices falling 4% as investors engaged in substantial profit-taking, realizing over $3.5 billion in gains. Long-term holders drove the majority of this sell-off, accounting for 56% of the profits – the largest single-day profit-realization event since April 2025.
The market concurrently witnessed extensive leveraged position liquidations exceeding $142 million within 24 hours. Potential for further corrections remains evident with Bitcoin’s Relative Strength Index (RSI) reaching overbought territory at 82.25 and funding rates holding slightly positive at +0.01%. Bitcoin’s market dominance concurrently climbed to 63.39%, reflecting heightened investor caution.
Despite robust inflows of $1.08 billion into Bitcoin ETFs – predominantly led by BlackRock’s iShares ETF – these substantial investments failed to counterbalance downward pressure from profit-taking and liquidations.
Macroeconomic factors continue to significantly influence market direction, particularly U.S. CPI inflation data. Crypto markets maintain a strong 0.84 correlation with the Nasdaq, emphasizing sensitivity to traditional finance trends amid current uncertainty.