In a recent tweet thread, CryptoQuant, a prominent cryptocurrency analytics firm, delved into the puzzling question of why Bitcoin’s price has failed to make any significant movements for the past three months.
Shedding light on the matter, they outlined several crucial factors contributing to this phenomenon, namely: Short-Term Holders, Miners, and Volatility.
According to CryptoQuant’s findings, the supply of Short-Term Holders (STH) has been steadily dwindling since April of this year. These holders, known for their propensity to swiftly sell off their Bitcoin reserves, have exerted substantial pressure on the market. As their numbers decline, their active selling continues to impede any substantial price gains.
In addition, miners have been actively offloading their Bitcoin reserves, which is far from being a mere coincidence. Peak sales have been observed over the past year, directly linked to the upcoming halving event. Miners needing liquidity to invest in new equipment have resorted to selling off their Bitcoin holdings, further dampening the price movement.
Another significant factor in the equation is the Volatility Index 1Y, which accounts for price volatility, inflow/outflow of funds, and the net taker ratio (buyer-seller ratio). This volatility index highlights a noteworthy decline in market activity starting from April of this year.
Such a decrease indicates a significant drop in trading volume and overall market interest, ultimately contributing to the stagnant state of Bitcoin’s price.
When considered collectively, these factors paint a vivid picture of the current Bitcoin market, where the price appears to be trapped within a narrow range. Despite the growing anticipation and speculation surrounding the cryptocurrency, these influences have successfully kept the price from experiencing any notable breakthroughs.
Bitcoin Price Analysis
Fervent Bitcoin supporters anticipate a substantial shift in price, prompting analysts to diligently observe these crucial elements and their potential consequences on the future path of the world’s leading cryptocurrency.
In the latest price analysis, Bitcoin (BTC) is currently being traded at $30,029.18, experiencing slight losses according to both the daily and weekly charts. Based on data from CoinMarketCap, BTC has witnessed a decrease of 0.64% in the last 24 hours and a decline of 1.27% in the weekly chart.
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