Bitcoin Retreats as Traders Cash In Recent Gains

Bitcoin retreats below $70,000 as short-term holders take profits, overwhelming strong ETF inflows. Meanwhile, Strike secures key NY licenses to expand Bitcoin services nationwide.

A brief rally that pushed Bitcoin above $73,000 has lost momentum, with the digital asset falling back below the $70,000 threshold. The reversal comes as a wave of profit-taking from recent buyers has offset strong institutional inflows into spot-based exchange-traded funds. Concurrently, the industry continues to make headway on the regulatory front in the United States.

Regulatory Milestone for Strike in New York

Amid the price volatility, the foundational regulatory landscape is strengthening. On March 5, 2026, Bitcoin financial services provider Strike secured both a BitLicense and a Money Transmitter License from the New York Department of Financial Services (NYDFS). This regulatory approval authorizes the company to offer its complete suite of services—including brokerage, payment processing, and custody solutions for Bitcoin—to customers in New York.

With these licenses, residents of the state can now convert salaries directly into Bitcoin, set up recurring purchases, and execute withdrawals to self-custody wallets. The approval marks a significant expansion, allowing Strike to operate across all 50 U.S. states.

ETF Inflows Overwhelmed by Selling Pressure

The initial catalyst for the week's price surge was substantial institutional demand. Over the first four trading days, approximately $917 million flowed into U.S. spot Bitcoin ETFs, propelling the price to an intraweek peak near $74,000. However, sentiment shifted on Thursday, when these funds experienced net outflows totaling $227 million.

On-chain analytics reveal the source of the selling pressure. Within a single 24-hour period, short-term holders moved more than 27,000 BTC to exchanges to realize profits. This event represents one of the largest profit-taking episodes from this investor cohort since late 2025, with sellers primarily capping gains from positions accumulated in prior weeks. The consequence was a swift price decline that sent Bitcoin back below $70,000.

Derivatives Data Confirms Bearish Shift

The shift in market sentiment is clearly reflected in derivatives trading. The Cumulative Volume Delta (CVD) indicator for both spot and perpetual futures markets has turned negative, signaling that aggressive selling pressure is currently overwhelming buy-side demand.

Specifically, the spot market CVD fell to -$202.49 million, while the figure for perpetual futures dropped to -$185.60 million. The data suggests that the initial wave of ETF-driven buying was insufficient to absorb the substantial sell orders from short-term traders. The market is now in search of a new support level to establish a foundation for its next move.