Bitcoin Drops Below $80,000 After Surge Prompts Profit-Taking

Bitcoin fell below $80,000 on Thursday after a recent rally stalled and traders increased profit-taking. On-chain analytics firm CryptoQuant reported holders realized 14,600 BTC in daily profits on May 4. Bitcoin reached nearly $82,500 on Wednesday before sliding to as low as $79,692 and trading around $80,150 later in the day.

CryptoQuant classified the recent price rise — more than 17% over the past month — as a “bear market rally.” The firm reported the May 4 profit realization was the largest single-day event since December 10 and noted the 30-day net realized profit returned to positive territory, meaning more holders booked gains than losses over the past month.

The firm compared current realized profit levels with those seen in bull market transitions, noting realized profits now net about 20,000 BTC versus the 130,000–200,000 BTC range it associates with major bull phases. CryptoQuant warned unrealized profits have climbed to levels not seen since June 2025, increasing incentives for traders to lock in gains.

CryptoQuant also pointed to factors that could postpone a larger sell-off: continued demand for perpetual futures, muted inflows to exchanges and a modest drop in spot buying. The firm noted those conditions have supported short-term price strength during previous bear market rallies.

Market data showed more than $269 million in long positions liquidated over the past 24 hours, according to CoinGlass. Users on the prediction market Myriad placed roughly 83% odds that Bitcoin will reach $84,000 before it falls to $55,000.

Other major tokens weakened on Thursday. Ethereum traded near $2,301 and XRP near $1.39, each down more than 2% for the day.

Public companies tied to Bitcoin mining saw share declines. American Bitcoin (ABTC) shares fell more than 9% after the company reported a net loss of about $82 million for Q1 2026, a 37% increase from Q4 2025. ABTC reported quarterly mining revenue fell roughly 20% while it added more than 1,600 BTC to its holdings and reduced estimated mining cost to about $36,200 per coin from $46,900 in the prior quarter.

Bitcoin remains more than 36% below its all-time high of $126,080 set in October. Analysts and on-chain data providers noted that spikes in realized profits at key resistance levels have preceded local price tops or extended consolidation phases in past bear markets.