CryptoQuant, a cryptocurrency analytics firm, recently released an analysis report stating that the bull market is far from over, as many price indicators differ significantly from the levels seen at the previous market peak.
Bitcoin Short-Term Holders and Miners Selling Off
According to CryptoQuant, traders sold off Bitcoin last week, realizing the highest profits since May 2019, indicating that short-term holders of Bitcoin have been cashing out after the cryptocurrency reached new all-time highs. Additionally, large Bitcoin holders have also been selling off their holdings, with a total of 567,000 Bitcoins transferred on March 12th, accounting for 35% of the total Bitcoin network transfer volume. CryptoQuant noted that some of these large holders are Bitcoin miners.
Cryptocurrency Bull Market Far from Over
CryptoQuant also found that although the unrealized profit ratio briefly surged to the highest level since the 2021 bull market at 69% and Bitcoin experienced a week of decline, the unrealized profit ratio is still at a high level of 47%. This has led them to believe that the bull market is far from over. Furthermore, the current inflow of funds from short-term holders accounts for only about 48% of Bitcoin, a number that would typically range from 84% to 92% during a true bull market cycle. Yonsei_dent, the author on the CryptoQuant platform, also pointed out the similarity between the trend of Bitcoin transitioning from long-term holders to short-term holders and the trend observed in the second half of 2020, using the indicator “Coin Days Destroyed” (CDD). All these factors suggest that the bull market may just be getting started.
Note: CDD refers to the time period (measured in days) between two transactions involving a specific amount of Bitcoin.
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