Fast Facts
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Easing Selling Pressure: The Bitcoin market is experiencing reduced selling pressure as large investors and short-term holders realize significant losses, contributing to a recovery in BTC prices from $80,000 to around $90,000 in three weeks.
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Declining Deposits: Bitcoin deposits into exchanges dropped dramatically from 88,000 BTC in mid-November to just 21,000 BTC, indicating reduced activity from large players and less selling overall.
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Potential for Relief Rally: Analysts at CryptoQuant suggest that sustained low selling pressure, coupled with the Federal Reserve’s recent 25 basis points interest rate cut, could trigger a relief rally in BTC, potentially pushing prices back toward $99,000.
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Heavy Loss Realizations: Large investors and short-term holders have realized over $3.2 billion in losses since BTC fell below $100,000, with the Spent Output Profit Ratio indicating negative margins, historically correlating with eased selling pressure.
Bitcoin Sees Reduced Selling Pressure After Fed Rate Cut
The Bitcoin market is currently experiencing a shift. Analysts at CryptoQuant indicate decreasing selling pressure following a recent interest rate cut by the Federal Reserve. This change could signal a potential upward trend for Bitcoin (BTC).
After reaching its all-time high of $126,000, Bitcoin’s price dipped below $100,000 last month. However, it has since bounced back from $80,000 to around $90,000. This recovery reflects a weekly gain of 1%. Notably, deposits into exchanges have dropped dramatically—from 88,000 BTC in mid-November to just 21,000 BTC today.
Large investors show a marked reduction in trading activity. Their share of total deposits fell from 47% to 21%, while the average amount deposited decreased by 36%. As investors have realized significant losses, this trend could prop up prices.
Approximately $646 million in losses were realized by Bitcoin whales last month. This marks the largest loss since July, totaling about $3.2 billion since the price fell below $100,000. Short-term holders have also offloaded assets, yielding negative profit margins consistently over the past four weeks.
“Historically, selling pressure eases when market participants realize they have incurred heavy losses,” say CryptoQuant analysts. If this easing continues, BTC could test the $99,000 level, potentially breaking past established resistance points.
This shift in investor sentiment suggests a growing confidence in Bitcoin’s resilience and value proposition. As cryptocurrency evolves, the stability it demonstrates during such fluctuations may enhance its role in technology and finance.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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