Flow

Bitcoin

Drops

Higher

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-price-drops-2-25" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Drops 2.25%</a><br></p>
<p style="text-align: justify">The <a href="https://en.bitcoinhaber.net/bitcoin-reaches-new-milestone-at-69990-projections-for-future-growth" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> price experienced a 2.25% drop in the last 24 hours, currently trading 16% below its all-time high of $73,835, which was reached on March 14. Over the past 30 days, Bitcoin has seen an 8.75% decline and a 5.5% drop in the last three months. This continuous downward trend since June has prompted market analysts to speculate whether the peak cycle for Bitcoin has been reached.</p>
<h2 id="is-bitcoin-showing-signs-of-weakness">Is Bitcoin Showing Signs of Weakness?</h2>
<p style="text-align: justify">Charles Edwards, founder of Capriole Investments, highlighted that various <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a> points suggest Bitcoin’s inability to reach new highs after two attempts, indicating potential fragility. In his recent newsletter, Edwards mentioned that the inflation rate of long-term Bitcoin holders (LTH) has been on the rise for the past two years, pointing to increased selling pressure.</p>
<h2 id="why-is-market-inflation-important">Why Is Market Inflation Important?</h2>
<p style="text-align: justify">According to Glassnode, the LTH market inflation rate tracks the annual rates of accumulation or distribution beyond daily miner issuance. Elevated values signify higher selling pressure as long-term holdings diminish. Historically, peaks in market inflation surpass nominal inflation during <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">bull market</a> peaks, suggesting a potential end to the cycle.</p>
<h2 id="key-takeaways-from-dormancy-flow-data">Key Takeaways from Dormancy Flow Data</h2>
<p style="text-align: justify">Another critical metric for understanding Bitcoin market cycles is the Dormancy Flow data, which evaluates the number of tokens spent relative to general trends. Glassnode data indicates a sharp rise in the Bitcoin Dormancy Z-score over the last 90 days. Edwards noted that this metric peaked significantly in April, indicating that the average age of spent assets was notably higher in 2024.</p>
<p style="text-align: justify">– Higher LTH inflation rates are linked to increased selling pressure.<br>– Dormancy Flow data spikes usually predict cycle peaks within three months.<br>– Current Dormancy Flow Z-score suggests Bitcoin may be overvalued relative to transactional assets, hinting at a bearish trend.</p>
<p style="text-align: justify">In conclusion, these indicators collectively suggest that Bitcoin’s price may have already peaked, signaling potential bearish trends for the broader cryptocurrency market. This analysis, supported by various data points, offers a comprehensive view of Bitcoin’s current market position.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-price-drops-2-25" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Drops 2.25%</a></h5>

Bitcoin Price Drops 2.25%

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