On the night of December 11, Bitcoin experienced a significant loss in value, particularly with the liquidation of long positions in the futures market leading to serious losses. As this article is being written, Bitcoin is trading at $41,786. What can be expected for Bitcoin? We examine using expert analyst comments and significant data.
According to an analysis by ETC Group, the recent price correction in Bitcoin is linked to an increase in the amount of profitable Bitcoin in circulation. ETC Group Research Director André Dragosch stated: “As Bitcoin investors began to make more profit, crypto assets have recently pulled back.”
Dragosch highlighted on-chain data that indicates an increase in the transfer of profit-generating Bitcoin to exchanges. He suggested that the presence of investors in a strong profit environment could mean that some are inclined to realize profits from their positions.
The ETC Group analysis reported that 88.3% of Bitcoin addresses and 77.6% of Ethereum addresses were in profit. ETC emphasized in a report that these rates are close to the highest values since the beginning of the year.
According to the report, profit-taking activities primarily occurred among short-term Bitcoin holders, namely those who held for less than 155 days. The report mentioned, “Transfers of Bitcoin to exchanges by short-term holders to realize profits reached the highest level since July this year. This definitely delayed the current rally to some extent due to increased selling pressure.”
