Goldman Sachs reports heavy profit taking in Bitcoin during May.

Goldman Sachs (GS) released a report on Monday stating that on-chain statistics for May present a mixed picture regarding the adoption of bitcoin (BTC) and ether (ETH).

The report states that changes to ether balances across cohort groups have remained largely unchanged, but addresses holding balances of more than 100,000 BTC have seen a monthly decrease of 31%.

The spent output profit ratio (SOPR) for bitcoin, which indicates the degree of realized profit, has seen a number of spikes during the month, reaching levels not seen since December 2020. This suggests that considerable profit taking has taken place in the spot markets, according to the bank.

Goldman Sachs also noted that the amount of bitcoin held on exchanges saw a steep decline of 12%, while ether supply saw a slight gain.

The report highlights that network congestion across both the Bitcoin and Ethereum blockchains was a key focus in May, causing monthly address activity for bitcoin and ether to fall by 13.8% and 16.7% respectively, as user activity was deterred by higher transaction fees.

However, the bitcoin average mean hash rate continued to push past its all-time high in May, gaining 5.4% during the month, with miner revenues increasing by 16.4%, the report added.

It is worth noting that hashrate refers to the total combined computational power that is being used to mine and process transactions on a proof-of-work blockchain, such as Bitcoin.

Read more: Bitcoin Retail Demand to Remain Strong Ahead of Halving Event: JPMorgan

This article was edited by Parikshit Mishra.