{"id":598558,"date":"2024-03-18T23:00:04","date_gmt":"2024-03-18T23:00:04","guid":{"rendered":"https:\/\/wncen.com\/?p=598558"},"modified":"2024-06-11T08:09:38","modified_gmt":"2024-06-11T08:09:38","slug":"profit-taking-panic-short-term-bitcoin-holders","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/profit-taking-panic-short-term-bitcoin-holders\/","title":{"rendered":"Profit-Taking Panic, Short-Term Bitcoin Holders Sell Off \u2013 What’s Next For BTC?"},"content":{"rendered":"

R<\/span>ecent on-chain data highlighted<\/a> a significant trend: a wave of profit-taking by investors who have held Bitcoin (BTC) for less than five months.<\/p>\n

As detailed by CryptoQuant’s latest data, this phenomenon is not just a random market movement but an echo of patterns observed at the zeniths of previous bull markets.<\/p>\n

Related Reading: Bitcoin Sentiment Cools Off, Price Rebound Soon?<\/a><\/div>\n

Profit-Taking Among Short-Term Bitcoin Holders Signals Market Shift<\/h2>\n

According to CryptoQuant, the Spent Output Profit Ratio (SOPR), a key metric in evaluating the profit and loss of Bitcoin transactions over a specific period, showcases a pronounced uptick<\/a> indicative of widespread profit realization.<\/p>\n

This tendency among short-term holders to liquidate their holdings for gains parallels historical market peaks and suggests a critical juncture for Bitcoin.<\/p>\n

\"Bitcoin
Bitcoin Short-Term Holder metric. | Source: CryptoQuant<\/figcaption><\/figure>\n

Crypto Dan, a seasoned market analyst, emphasized the significance of this trend, stating, “This movement is something that only happens once every few years,” highlighting the uniqueness and possible consequences of the present market trends.<\/p>\n

\n

$BTC<\/a> short-term investors took large profits<\/p>\n

“In relation to this adjustment, if we look at the SOPR, there was a big movement related to profit realization by short-term holders who held #BTC<\/a> for less than 5 months.”
\nby
@DanCoinInvestor<\/a><\/p>\n

Link \ud83d\udc47https:\/\/t.co\/RqBtDm81hO<\/a><\/p>\n

\u2014 CryptoQuant.com (@cryptoquant_com) March 18, 2024<\/a><\/p><\/blockquote>\n

New Market Forces At Play: ETFs Inflow Set To Rebalance The Equation<\/h2>\n

While the SOPR metric might signal alarm bells reminiscent of past bull market peaks<\/a>, the crypto landscape is underpinned by factors that could mitigate the traditional outcomes of such profit-taking.<\/p>\n

Among these is the recent introduction of a BTC spot Exchange-Traded Fund (ETF). This new avenue for Bitcoin investment introduces a complex layer to the market’s dynamics, potentially cushioning any adverse effects of short-term holders’ profit-taking activities.<\/p>\n

Dan concluded by noting<\/a>:<\/p>\n

But considering the BTC spot ETF and potential additional inflows from institutions and individuals, it is difficult to judge it as simply a signal of the peak of a bull market. After a short-term correction period, it’s very likely that we will see a strong further bull in 2024.<\/p><\/blockquote>\n

CoinShares Head of Research, James Butterfill, provides<\/a> a further layer of analysis, suggesting an imminent “positive demand shock” for Bitcoin. According to Butterfill, the delay in making spot Bitcoin ETFs accessible to the Registered Investment Advisors (RIA) market \u2014 a sector managing around $50 trillion in assets \u2014 is set to end.<\/p>\n

With RIAs requiring three months of trading data<\/a> before including new ETFs in their portfolios, the market is on the cusp of witnessing a substantial influx of new investments into Bitcoin. “If 10% of RIAs chose to invest 1% of their portfolios, this could result in approximately $50 billion in additional inflows,” Butterfill elaborated, highlighting the scale of potential market impact.<\/p>\n

Moreover, the current supply-demand dynamics within the Bitcoin market are skewed<\/a> towards increasing demand against decreasing supply.<\/p>\n

Related Reading: Bitcoin Approaches Risky Territory As Halving Event Draws Near<\/a><\/div>\n

The daily demand for BTC, fueled by the trade of spot BTC ETFs and the average production of new coins, underscores a growing discrepancy that ETF issuers are filling by tapping into the secondary market<\/a>.<\/p>\n

This scenario is evidenced by a dramatic decrease in OTC desk coin holdings, a direct consequence of ETF-driven demand, according to Butterfill.<\/p>\n

\"Bitcoin
BTC price is moving sideways on the 4-hour chart. Source: BTC\/USDT on TradingView.com<\/a><\/figcaption><\/figure>\n

Featured image from Unsplash, Chart from TradingView<\/p>\n","protected":false},"excerpt":{"rendered":"

Recent on-chain data highlighted a significant trend: a wave of profit-taking by investors who have held Bitcoin (BTC) for less than five months. As detailed by CryptoQuant’s latest data, this phenomenon is not just a random market movement but an echo of patterns observed at the zeniths of previous bull markets. Related Reading: Bitcoin Sentiment Cools Off, Price Rebound Soon? Profit-Taking Among Short-Term Bitcoin Holders Signals Market Shift According to CryptoQuant, the Spent Output Profit Ratio (SOPR), a key metric in evaluating the profit and loss of Bitcoin transactions over a specific period, showcases a pronounced uptick indicative of widespread profit realization. This tendency among short-term holders to liquidate their holdings for gains parallels historical market peaks and suggests a critical juncture for Bitcoin. Crypto Dan, a seasoned market analyst, emphasized the significance of this trend, stating, “This movement is something that only happens once every few years,” highlighting the uniqueness and possible consequences of the present market trends. $BTC short-term investors took large profits “In relation to this adjustment, if we look at the SOPR, there was a big movement related to profit realization by short-term holders who held #BTC for less than 5 months.” by @DanCoinInvestor Link \ud83d\udc47https:\/\/t.co\/RqBtDm81hO \u2014 CryptoQuant.com (@cryptoquant_com) March 18, 2024 New Market Forces At Play: ETFs Inflow Set To Rebalance The Equation While the SOPR metric might signal alarm bells reminiscent of past bull market peaks, the crypto landscape is underpinned by factors that could mitigate the traditional outcomes of such profit-taking. Among these is the recent introduction of a BTC spot Exchange-Traded Fund (ETF). This new avenue for Bitcoin investment introduces a complex layer to the market’s dynamics, potentially cushioning any adverse effects of short-term holders’ profit-taking activities. Dan concluded by noting: But considering the BTC spot ETF and potential additional inflows from institutions and individuals, it is difficult to judge it as simply a signal of the peak of a bull market. After a short-term correction period, it’s very likely that we will see a strong further bull in 2024. CoinShares Head of Research, James Butterfill, provides a further layer of analysis, suggesting an imminent “positive demand shock” for Bitcoin. According to Butterfill, the delay in making spot Bitcoin ETFs accessible to the Registered Investment Advisors (RIA) market \u2014 a sector managing around $50 trillion in assets \u2014 is set to end. With RIAs requiring three months of trading data before including new ETFs in their portfolios, the market is on the cusp of witnessing a substantial influx of new investments into Bitcoin. “If 10% of RIAs chose to invest 1% of their portfolios, this could result in approximately $50 billion in additional inflows,” Butterfill elaborated, highlighting the scale of potential market impact. Moreover, the current supply-demand dynamics within the Bitcoin market are skewed towards increasing demand against decreasing supply. Related Reading: Bitcoin Approaches Risky Territory As Halving Event Draws Near The daily demand for BTC, fueled by the trade of spot BTC ETFs and the average production of new coins, underscores a growing discrepancy that ETF issuers are filling by tapping into the secondary market. This scenario is evidenced by a dramatic decrease in OTC desk coin holdings, a direct consequence of ETF-driven demand, according to Butterfill. Featured image from Unsplash, Chart from TradingView<\/p>\n","protected":false},"author":580,"featured_media":596876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,532,8856,85960,86326,1119,78790,6664,8379],"class_list":["post-598558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-etf","tag-bitcoin-halving","tag-bitcoin-holders","tag-bitcoin-spot-etf","tag-btc","tag-btcusdt","tag-crypto","tag-etfs"],"acf":[],"yoast_head":"\nProfit-Taking Panic? 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His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or \u201ckaizen,\u201d striving to be 1% better every day. His mantras, \u201cGod knows best\u201d and \u201cEverything is still on track,\u201d reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He\u2019s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck\u2014unflappable. Edyme is like trading in your car for a jet\u2014bold. He\u2019s the guy who\u2019d ask his boss for a pay cut just to prove a point\u2014(uhhh\u2026). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent\u2014okay, maybe that\u2019s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. 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A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme\u2019s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events\u2014like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ\u2019s arrest\u2014has honed his keen sense of market dynamics. When he isn\u2019t crafting engaging crypto content, you\u2019ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he\u2019s catching some Z\u2019s or scrolling through Elon Musk\u2019s very own X platform\u2014(oops, another screen activity, my bad\u2026) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters\u2014(don\u2019t judge, that\u2019s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or \u201ckaizen,\u201d striving to be 1% better every day. His mantras, \u201cGod knows best\u201d and \u201cEverything is still on track,\u201d reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He\u2019s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck\u2014unflappable. Edyme is like trading in your car for a jet\u2014bold. He\u2019s the guy who\u2019d ask his boss for a pay cut just to prove a point\u2014(uhhh\u2026). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent\u2014okay, maybe that\u2019s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That\u2019s just not the way he roll. He has these favorite lyrics from NF\u2019s \u201cClouds\u201d that resonate deeply with him: \u201cWhat you think's probably unfeasible, I've done already a hundredfold.\u201d PS\u2014Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He\u2019s 100% Him-alayan. Screw it, he ate the opp.","sameAs":["https:\/\/x.com\/0xEdyme"],"url":"https:\/\/wncen.com\/author\/samueledymeabayomi\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Profit-Taking Panic, Short-Term Bitcoin Holders Sell Off \u2013 What’s Next For BTC?","url":"http:\/\/wncen.com\/news\/profit-taking-panic-short-term-bitcoin-holders\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/wncen.com\/news\/profit-taking-panic-short-term-bitcoin-holders\/"},"thumbnailUrl":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/03\/DALL\u00b7E-2024-03-08-09.16.07-A-visually-striking-wide-format-image-showcasing-the-concept-of-Bitcoins-price-fluctuation.-The-image-features-a-large-golden-Bitcoin-symbol-at-the.jpg?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/03\/DALL\u00b7E-2024-03-08-09.16.07-A-visually-striking-wide-format-image-showcasing-the-concept-of-Bitcoins-price-fluctuation.-The-image-features-a-large-golden-Bitcoin-symbol-at-the.jpg?fit=1792%2C1024"},"articleSection":"Cryptocurrency Market News","author":[{"@type":"Person","name":"Samuel Edyme"}],"creator":["Samuel Edyme"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/wncen.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin etf","bitcoin halving","bitcoin holders","bitcoin spot etf","btc","btcusdt","crypto","etfs"],"dateCreated":"2024-03-18T23:00:04Z","datePublished":"2024-03-18T23:00:04Z","dateModified":"2024-06-11T08:09:38Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Profit-Taking Panic, Short-Term Bitcoin Holders Sell Off \\u2013 What’s Next For BTC?\",\"url\":\"http:\\\/\\\/wncen.com\\\/news\\\/profit-taking-panic-short-term-bitcoin-holders\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/wncen.com\\\/news\\\/profit-taking-panic-short-term-bitcoin-holders\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/03\\\/DALL\\u00b7E-2024-03-08-09.16.07-A-visually-striking-wide-format-image-showcasing-the-concept-of-Bitcoins-price-fluctuation.-The-image-features-a-large-golden-Bitcoin-symbol-at-the.jpg?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/03\\\/DALL\\u00b7E-2024-03-08-09.16.07-A-visually-striking-wide-format-image-showcasing-the-concept-of-Bitcoins-price-fluctuation.-The-image-features-a-large-golden-Bitcoin-symbol-at-the.jpg?fit=1792%2C1024\"},\"articleSection\":\"Cryptocurrency Market News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Samuel Edyme\"}],\"creator\":[\"Samuel Edyme\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin etf\",\"bitcoin halving\",\"bitcoin holders\",\"bitcoin spot etf\",\"btc\",\"btcusdt\",\"crypto\",\"etfs\"],\"dateCreated\":\"2024-03-18T23:00:04Z\",\"datePublished\":\"2024-03-18T23:00:04Z\",\"dateModified\":\"2024-06-11T08:09:38Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/wncen.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/03\/DALL\u00b7E-2024-03-08-09.16.07-A-visually-striking-wide-format-image-showcasing-the-concept-of-Bitcoins-price-fluctuation.-The-image-features-a-large-golden-Bitcoin-symbol-at-the.jpg?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/598558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/users\/580"}],"replies":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/comments?post=598558"}],"version-history":[{"count":0,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/598558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media\/596876"}],"wp:attachment":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media?parent=598558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/categories?post=598558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/tags?post=598558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}