As Bitcoin climbs back to $66,000, short-term holders are offloading their holdings with little to no profit, even as interest from large investors remains apparent. However, analysts at CryptoQuant caution that sustained growth is yet to materialize to ensure the rally’s longevity.
Following news of lower-than-expected inflation in the U.S., Bitcoin saw a resurgence, reaching the $66,000 threshold by late Wednesday. However, this upswing has translated to minimal gains for short-term holders who are now selling off their holdings.
According to a recent report from CryptoQuant, short-term Bitcoin holders are exiting the market “with virtually no profit,” highlighting the lack of significant acceleration in growth necessary to sustain the rally.
The report also observes a stabilization in the balance of Bitcoin across over-the-counter desks since late April, indicating a slowdown in the influx of Bitcoin through these channels. Despite this stabilization, analysts caution that the growth in stablecoin liquidity, typically associated with sustainable price uptrends, is “still decelerating” from a market liquidity perspective.
Furthermore, analysts point out that Bitcoin‘s current price remains relatively undervalued when considering miner profitability.
Meanwhile, analysts at blockchain firm Kaiko suggest that Bitcoin‘s recent halving could soon prompt miners to sell their holdings if prices fail to rebound quickly. The daily average network fees, which surged post-halving, are now on the decline, signaling a potential pressure on miners. Initially providing relief to miners, these fees are diminishing again as the initial enthusiasm surrounding the Runes protocol fades.
Summary Review: Bitcoin‘s resurgence to $66,000 has seen short-term investors selling off their holdings with minimal gains, highlighting the challenges of profiting in a volatile market. While interest from large investors persists, analysts emphasize the need for sustained growth to ensure the rally’s stability. Despite signs of stabilization in Bitcoin balances and fluctuations in stablecoin liquidity, uncertainties remain regarding miner profitability and potential sell-offs. As Bitcoin continues to navigate through market dynamics, vigilance and strategic decision-making remain paramount for investors and stakeholders alike.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
