The bitcoin price surged to an all-time high of $123 153 before pulling back about 3%, as traders locked in profits after the rally.
That’s the first major pullback in weeks and a clear sign that some traders decided it was time to cash in on the rally.
Bitcoin price update
The dip came after massive inflows from institutional investors and a weak US dollar pushed Bitcoin into record-breaking territory.
But this isn’t a crash. It’s more of a breather.
What drove the rally?
There’s a lot happening behind the scenes.
Lawmakers in the US are debating new crypto legislation, including the Genius Act and Clarity for Payment Stablecoins Act.
The industry sees this as a step toward proper regulation, which usually means more investor confidence and less chaos.
ETFs also played a big role. Institutional inflows into Bitcoin-related products hit $3.4 billion in just one week. Of that, $2.2 billion came in over just two days.
Futures markets also exploded, with open interest hitting $57 billion. This is a sign that big money is still committed.
Why the sudden dip?
Simple: profit-taking.
Traders who bought low are now locking in gains after the massive rally. According to Bloomberg, Bitcoin lost about 3.2% on Tuesday.
Ether dropped 2%. Solana and XRP also took a knock.
This kind of pause is normal after a big run-up. It doesn’t mean sentiment is collapsing, just cooling down.
What’s next for Bitcoin?
If you’re a long-term holder, this is no cause for panic. Analysts say this is the kind of pullback that often comes before another leg up.
Momentum from institutional investors hasn’t slowed.
With Crypto Week still unfolding and key regulatory moves in the spotlight, Bitcoin could test $125 000 soon.
The market may be catching its breath, but the run isn’t over yet.
