Bitcoin experienced a loss in value with the decline that occurred on the night of December 11. Particularly, the liquidation of long positions in the futures market led to significant losses. As of the time of writing, Bitcoin is trading at the level of 41,786 dollars. So, what can be expected from Bitcoin? We examine this with expert analyst comments and important data.
According to an analysis by ETC Group, the price correction experienced in Bitcoin is associated with the increase in the amount of Bitcoin in circulation that is currently in a profitable position. Research Director André Dragosch noted that as Bitcoin investors earn more profit, crypto assets are retracting.
Dragosch highlighted on-chain data showing an increase in the amount of profit-gained Bitcoin being sent to exchanges. He mentioned that investors in the market are in a strong profit environment and that some investors may be inclined to realize profits from their positions.
In ETC Group’s analysis, it was pointed out that 88.3% of Bitcoin addresses and 77.6% of Ethereum addresses are profitable. ETC emphasized that these rates are close to the highest values seen since the beginning of the year.
The report emphasized that the activity of realizing profits is particularly occurring among short-term Bitcoin holders, that is, those who have held for less than 155 days. The report indicated that short-term holders transferring Bitcoin to exchanges for profit has reached the highest level since July of this year, and this situation has increased the selling pressure, thereby slightly delaying the current rally.