The largest digital asset by market cap experienced a historic price surge since last Wednesday as it skyrocketed by over $15,000 within less than a week.

On its way up, it broke all barriers and previous all-time high and set a new record at just over $123,000. It briefly became the fifth-biggest global asset by surpassing silver, Alphabet (Google), and Amazon, before it settled at sixth position following a somewhat expected price correction.

Why Was That Correction?

Nothing really goes up in a straight line. All price pumps are accompanied by corrections, and this is particularly true for the ever-volatile cryptocurrency market. During the aforementioned rally, BTC was in a up only mode for days, and this correction seemed overdue, according to some experts.

When an asset jumps by roughly 10% in such a relatively short period, certain investors might want to secure some profits, especially when they have been waiting for it to break out of consolidation for months.

Data from some of the largest cryptocurrency analytics platforms confirms this narrative. CryptoQuant repoted that large investors had realized profits of more than $1.5 billion within a day or so. Glassnode went even further, indicating that all investors have booked profits of somewhere up to $3.5 billion. Data from Arkham shows that even the government of Bhutan started to sell off some of its BTC holdings.

Glassnode also said the ratio between Long-Term Holders (LTH) and Short-Term Holders (STH) has signaled a trend reversal, which suggests early signs of profit taking.

Sharp drop in the $BTC LTH/STH Supply Ratio and a flip in 30D % change from accumulation to distribution suggest early signs of profit-taking. After months of steady LTH inflows and rising price, this could mark a turning point. Key metric to watch for trend reversal. pic.twitter.com/eLj8DL3X1C

Before the correction started to materialize, CryptoPotato outlined four potential factors that could lead to such a retracement. What we didnt mention at the time was the looming US CPI data, which went live today and was slightly higher than expected a development typically regarded as bearish for riskier assets like crypto.

Where to Next?

As usual, the community is split when it comes to predicting where the cryptocurrency market (and especially its leader) is heading next. Some are envisioning price pumps to $200,000, claiming that the bullish trend remains intact, while others warned that BTCs gains have neared their climax.

Santiment also weighed in on the matter, noting that BTCs social media dominance had risen to over 43% of all discussions following its meteoric rise to over $123,000. Such a sudden spike suggests that many traders are FOMO-ing in, which could be concerning.

Consequently, the analytics resource advised people to wait for the euphoria to cool down some, and youll likely find another key entry point coming up.

As Bitcoins market value crept above $123.1K for the first time in its 17+ year history, there was an equally historic social dominance spike. 43.06% of all crypto discussions were about $BTC just as the coins market value was peaking.

Though its generally a fantastic sign… pic.twitter.com/rvxGW27vk0