Slowing Pace of Bitcoin Following Latest Record-Breaking Peak
The Bitcoin market is experiencing a shift, moving away from the frenzied activity that followed its all-time high of $123,000 in July 2025. Key indicators suggest a slowing momentum and a phase of profit-taking by traders, as the market enters a bullish cooldown.
The Bull Score Index, a measure of market sentiment, has dropped from 80 to 60, signalling a softening in momentum despite remaining technically bullish. Stablecoin liquidity growth, a proxy for fresh capital entering the crypto market, has stalled and even turned negative, indicating a slower pace of new investment.
Profit-taking is evident, with the unrealized profit margin held by traders declining to around 7.4%. Many holders have realized gains, reducing immediate buying pressure. There is also a noticeable decline in Bitcoin transaction volume, daily active addresses, and network growth, suggesting waning participation and engagement.
Social sentiment reveals over-optimism, with high MVRV ratios (market value to realized value), a condition that often precedes short-term corrections. Seasonal factors, such as summer's historically lower trading volumes, are amplifying the slowdown.
Despite these developments, the market has not yet shown definitive signs of a bearish trend reversal. Exchange-related metrics like net flows have shown some outflows, yet demand appears balanced with opportunistic buying at key lower levels near $116,000.
Analysts warn market participants to stay alert for new developments, as the cooling market could lead to a period of consolidation or mild price correction. Short-term price could fluctuate between previously established support ranges ($110K-$116K) while buyers and sellers find balance.
Longer-term holders' steady behavior and some retail inflow may underpin the price base, potentially setting the stage for another upward leg after this consolidation. However, over-optimism and bearish on-chain indicators warrant caution, as these often precede corrections that adjust overbought conditions.
In summary, the Bitcoin market has lost some immediate upward momentum, entering a phase of systematic profit-taking and liquidity cooling. This likely leads to near-term consolidation with increased volatility, influencing future prices towards a calmer, possibly corrective phase before any new bullish trend can assert itself. Market participants are advised to stay vigilant for any new developments.
[1] Bull Score Index: https://www.cryptoground.com/bull-score/ [2] CryptoQuant: https://www.cryptoquant.com/ [3] Glassnode: https://glassnode.io/ [4] OnChain Analytics: https://onchain.so/ [5] CoinMarketCap: https://coinmarketcap.com/currencies/bitcoin/
- The Bull Score Index, a gauge of market sentiment, indicates a softening in the crypto market's momentum, despite remaining technically bullish, suggesting a possible period of consolidation or mild price correction.
- Stablecoin liquidity growth, a proxy for fresh capital entering the crypto market, has stalled and even turned negative, demonstrating a slowdown in DeFi investing and trading activities.
- Many traders are engaging in profit-taking, as evidenced by the declining unrealized profit margin and decreasing Bitcoin transaction volume, signaling a shift in the overall technology-driven finance landscape.
