Bitcoin drops to $93,000 after recent rise
Bitcoin, the main cryptocurrency, has dropped to $93,000 from a high of $99,000 earlier this week.This is the longest losing streak for the digital asset since the rise triggered by Donald Trump's election triumph.
With Bitcoin's price presently at $93,346, down 5.0% in the previous 24 hours, market analysts and traders may have to wait a little longer for the cryptocurrency to cross the much-anticipated $100,000 threshold.
The recent dip in Bitcoin's value has an impact on the overall cryptocurrency market, which has experienced a 3.8% retracement in the last day. Bitcoin's moves frequently impact other cryptocurrencies, so price variations reverberate throughout the crypto market.
Despite the slump, evidence shows that long-term Bitcoin holders are nonetheless profiting and actively cashing out. During the recent optimistic rise sparked by Trump's election victory, Bitcoin reached its all-time high many times, forcing long-term investors to take profits.
This resulted in a huge spike in selling pressure, with on-chain data indicating an average of 25.6k BTC traded per day, the highest level since April 2024.
Glassnode, a blockchain data source, has detected an increase in selling activity and shared its results with the X community. "Things are getting hot! #Bitcoin long-term holders have come out in force, with selling pressure reaching -366K #BTC/month—the highest level since April 2024," Glassnode tweeted.
The selling pressure from long-term holders has been offset by spot Bitcoin ETFs, which have received over $7 billion in inflows since the US elections, bringing their entire worth to $105 billion.
Despite this significant investment, Bitcoin's price has not risen above $100,000, raising questions about the role of long-term holders in the market's stagnation.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted why huge investments in Bitcoin ETFs have not resulted in a price surge. "I see a lot of CT perplexed/frustrated as to how Saylor can buy $5 billion of BTC but the price doesn't rise, which is similar to what I hear about ETFs following large flows. The problem is coming from within the house—long-term holders," Balchunas explained.
The 12-spot Bitcoin ETFs, which debuted earlier this year, are the first of their sort for a cryptocurrency. These funds enable institutional investors to acquire exposure to Bitcoin price changes without actually holding the asset. They have been a significant driver of market activity, with noteworthy participation from big financial asset managers such as BlackRock and Fidelity.
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