Short-Term Bitcoin Holders Show Signs of Exhaustion
André Dragosch from Bitwise has highlighted a worrying trend in Bitcoin spot exchanges, reporting a decline in net buying volumes over the past three days.
Notably, there has been a substantial rise in long-term liquidations of Bitcoin , reaching levels not seen since early August when prices were lower, indicating that short-term sellers might be losing momentum.
Dragosch mentioned that many short-term wallets have sold Bitcoin at a loss, more than during previous lows in August. Market sentiment has shifted from bullish to neutral, as reflected in the Bitwise Cryptoasset Sentiment Index.
Analysis from Glassnode reveals a shift in Bitcoin supply dynamics, with illiquid Bitcoin supply hitting a record high while both highly liquid and illiquid supplies have dropped to yearly lows. This change suggests that more Bitcoin is being held long-term.
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IMF Issues Warning on El Salvador’s Bitcoin StrategyFurthermore, Bitwise Research Analyst Ayush Tripathi noted that the supply of Bitcoin owned by long-term holders—those who have kept their assets for at least 155 days—has grown since early October. This suggests that confidence in Bitcoin as a long-term investment remains strong, even as short-term demand weakens.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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