In simpler terms, after a period of growth (the bullish run) and subsequent price adjustment (correction), Bitcoin (BTC), the global leader among digital assets, is now experiencing a phase where people are more inclined to sell it rather than buy or hold onto it. This indicates that market participants are moving towards offloading their Bitcoin holdings.
Implication of Bitcoin’s distribution phase
According to a recent post by Glassnode, a well-known platform for on-chain analysis, the Bitcoin market has experienced a shift as the Accumulation Trend Score (ATS) is currently at 0.21. This ATS number indicates how Bitcoin owners are likely to behave, and a value close to zero suggests distribution or selling, while a number closer to one indicates accumulation.
According to Glassnode’s post, it appears that certain Bitcoin owners are offloading their coins, which is contributing to the recent downturn in the overall crypto market. This is a change from the pattern seen in December 2024, during which the market underwent net buying activity.
As we welcomed the New Year, the Bitcoin market has transitioned into a period where more coins are being sold than bought, as indicated by an Accumulation Trend Score of 0.21. This implies that most Bitcoin holders are offloading their coins rather than accumulating them.
— glassnode (@glassnode) January 8, 2025
Experts view this attitude as bearish, as an increasing number of investors are trying to secure their gains. This trend might indicate a potential market decline that may prolong the ongoing price drop.
Currently, a Bitcoin is being traded for approximately $95,248.89, marking a 4.68% drop over the past day. Notably, trading volume has surged by 46.66%, reaching $69.99 billion, suggesting heightened market activity.
Divergent views on Bitcoin’s future
Regardless of the pessimistic outlook, acclaimed author Robert Kiyosaki views this period as a chance for investors. In his perspective, the drop in BTC prices from $102,000 to $95,000 presents an opportunity for investors to purchase at lower prices and hold on (HODL).
Robert Kiyosaki underscored the fact that only around 1.8 million Bitcoins remain to be mined, which underscores the urgency for investors to acquire this asset given its recent dip in price.
On the contrary, Bitcoin skeptic Peter Schiff anticipates a sudden drop in Bitcoin’s value. This is because he believes that once investors understand the U.S. government has no intention of purchasing the cryptocurrency, they may quickly exit their positions.
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2025-01-08 19:50