Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Long-term Bitcoin holders are selling their holdings, potentially affecting market dynamics.</li> 
 <li>Despite a decrease in demand and increased selling pressure, there is still potential for a market rally.</li> 
</ul>  
<p>A significant trend is emerging among <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a> (BTC) holders, indicating potential shifts in market dynamics. Bid-ask imbalances suggest that sellers are currently dominating the market, which could potentially lead to a downturn.</p> 
<p>The profitability of Bitcoin has decreased following a recent market correction, with gains now diminished. Current data shows that Bitcoin has seen a 19.86% increase. Despite a slight 0.37% price increase, doubts remain about Bitcoin’s ability to maintain these gains due to ongoing selling activity.</p> 
<h2 id="long-term-holders-start-selling-bitcoin">Long-term Holders Start Selling Bitcoin</h2> 
<p>Information from Glassnode shows that long-term Bitcoin holders have started to sell off their holdings, with the exception of “Ultra Long-Term Holders”, who have held their Bitcoin for more than seven years. Long-term holders are defined as those who have held Bitcoin for over six months (180 days).</p> 
<p>The latest data indicates that the percentage of Bitcoin held by this group has decreased by around 10%, dropping from over 60% to around 50%. This shift in Bitcoin ownership is impacting the progression of the market. Generally, during initial stages, long-term and ultra-long-term holders control a significant portion of Bitcoin.</p> 
<p>However, as selling pressure increases, this balance is shifting, giving short-term holders more influence in the market. Until short-term holders account for 70-80% of the market, which has not happened yet, the market remains in its early to mid-range phase.</p> 
<h2 id="long-term-holders-losing-interest-in-bitcoin">Long-term Holders Losing Interest in Bitcoin</h2> 
<p>Long-term Bitcoin holders are losing interest more quickly than expected. This trend is evident across different cohorts of long-term holders, especially those who accumulated Bitcoin during the bear market between June and November.</p> 
<p>These groups have started to significantly reduce their holdings, as shown by recent market trends. Specifically, the 3-5 year cohort, which peaked at 15.3%, has since decreased to 13.9%. If selling pressure continues to increase, Bitcoin could experience further declines.</p> 
<p>The introduction of Bitcoin spot ETFs has brought a new dynamic to the market. Institutional investors, who have been accumulating Bitcoin in recent months, are now starting to sell, with their holdings decreasing from 25% to 16%. Nevertheless, there is still potential for a market rally. As long-term holders have not yet sold in large quantities, it suggests they may be waiting for prices to rise further before taking profits.</p> 
<h2 id="low-demand-for-bitcoin-puts-pressure-on-price">Low Demand for Bitcoin Puts Pressure on Price</h2> 
<p>Recent data from Hyblock shows a 50% bid imbalance in 1-2% of the order book depth. This imbalance indicates that the market is currently in a sell phase, characterized by low demand (fewer buyers) and high supply (more sellers), which puts downward pressure on Bitcoin’s price.</p> 
<p>Simultaneously, data from CryptoQuant reveals an increase in the amount of Bitcoin available on exchanges, with approximately 22,289 BTC being deposited. This has resulted in a gradual increase in Exchange Netflow, further contributing to the growing supply of Bitcoin on exchanges.</p>

Crypto Chaos: Group Begins Unloading Bitcoin – Is Market Instability on the Horizon?

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CoinEagle.com

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