The following are some of the reasons why you should consider hiring someone elseecent on-chain data highlighted A significant trend is the wave of investors taking profits who hold Bitcoin (BTC), for less than 5 months.
CryptoQuant’s most recent data has shown that the current market phenomenon is not a mere random move, but rather echoes patterns seen during previous bull markets.
Bitcoin Markets Shift Signaled by Profit-Taking among Short-Term Bitcoin Owners
CryptoQuant says that the SOPR, a key measure in evaluating Bitcoin transaction profits and losses over a period of time, shows a pronounced uptick Profits are not always realized at the same level.
The tendency of short-term investors to sell their Bitcoin holdings in order to gain profit is similar with historical market peaks, and indicates a crucial juncture at which Bitcoin will be.
Crypto Dan, an experienced market analyst, highlighted the importance of this trend by stating: “This movement is something that only happens once every few years,” The uniqueness of market trends and their possible effects are highlighted.
$BTC Investors who invested for a short time period made huge profits
“In relation to this adjustment, if we look at the SOPR, there was a big movement related to profit realization by short-term holders who held #BTC for less than 5 months.”
You can also read about how to get in touch with us. @DanCoinInvestorLink 👇https://t.co/RqBtDm81hO
— CryptoQuant.com (@cryptoquant_com) March 18, 2024
As ETFs inflow begins to balance the equation, new forces are at work.
Although the SOPR might sound alarm bells, it is not a new metric. bull market peaksThe crypto-world is characterized by some factors which could reduce the impact of traditional profit taking.
One of these recent developments is the introduction by the Exchange-Traded Funds (ETF) for BTC. This new investment avenue introduces an additional layer of complexity into the dynamic market. It could also help to cushion any potential negative impacts from short-term profit taking.
Dan concluded by noting:
However, if you take into account the BTC spot ETF as well as potential inflows of additional funds from individuals and institutions it’s difficult to say that this is simply the apex of a bull. We are likely to see an even stronger bull after 2024, following a relatively short correction.
James Butterfill is the head of research at CoinShares. provides Another layer of analysis that suggests an impending “positive demand shock” Bitcoin. According to Butterfill, the delay in making spot Bitcoin ETFs accessible to the Registered Investment Advisors (RIA) market — a sector managing around $50 trillion in assets — is set to end.
Three months’ experience is required for RIAs. trading data Before adding new ETFs to their portfolios the market will witness a significant influx of investments in Bitcoin. “If 10% of RIAs chose to invest 1% of their portfolios, this could result in approximately $50 billion in additional inflows,” Butterfill elaborated on the market’s potential, and highlighted its size.
The current dynamics of supply and demand within Bitcoin are also important. market are skewed Increased demand and decreasing supply.
Daily demand for BTC is fueled by spot BTC ETF trading and average coin production. This highlights a growing gap that ETF issuers fill by tapping into the secondary market.
Butterfill argues that the ETFs are driving a drastic decrease in OTC Desk Coin holdings.
Chart by TradingView, Featured Image from Unsplash
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