Bitcoin
Bitcoin at US$61,000: are investors losing interest? THIS is a worrying sign
- The price of Bitcoin fell as the rate of accumulation across all cohorts slowed.
- The addresses were largely unprofitable and had little incentive to sell their holdings.
Bitcoin [BTC] it has fallen to the $61,000 mark at press time, causing a rise in skepticism among holders and traders.
Waiting accumulation
One of the reasons for the same would be the decreasing accumulation of BTC observed at all levels. This trend began in May, which coincided with the lowest local price of Bitcoin.
Over the past 30 days, all groups combined have added around 10,000 Bitcoins to their holdings. This is nothing compared to the 19,000 new Bitcoins that were created in the same period.
It was small investors, often referred to as shrimpers, who led the accumulation effort.
Source: X
The decline in BTC accumulation could result in price drops at worst and price stagnation at best.
If addresses continue to HODL their BTC despite market fluctuations, the price of BTC may remain the same and may not turn red in the near future.
What will the holders do?
One of the things that would dictate the behavior of these holders would be their profitability. AMBCrypto’s analysis of Santiment data revealed that the MVRV index for BTC remained in the red.
This indicated that most BTC addresses held their coins at a loss. Most addresses would be willing to wait until their BTC becomes profitable before selling their holdings.
Another key factor that will play a role in determining holder behavior would be the Long/Short ratio. Last month, BTC’s Long/Short ratio dropped significantly.
A decrease in the Long/Short ratio indicated that short-term holders were slowly starting to outperform long-term holders at the time of writing.
To read Bitcoins [BTC] Price prediction 2024-25
These short-term holders are much more likely to panic and sell their holdings in times of market uncertainty and can increase the selling pressure faced by BTC.
Source: Santíment
At the time of writing, BTC is trading at $61,533.04 and its price has fallen by 1.50% in the last 24 hours. Furthermore, its turnover decreased by 1.77%.