Analysts at market intelligence platform CryptoQuant revealed that the BTC price bottoming signal cannot be activated until the unrealized gains of short-term holders reach -10%.
According to the CryptoQuant Institutional Insights Weekly Cryptocurrency Report, returns for short-term holders are approaching zero, which is causing selling pressure to ease. However, major digital assets have not yet bottomed out in price.
BTC falls below $40,000
Earlier this week, Bitcoin fell below $40,000 for the first time since December 3, 2023, resulting in approximately $230 million in short-term and long-term liquidations. The asset hit its lowest price since the U.S. Securities and Exchange Commission (SEC) approved the listing of a number of spot Bitcoin exchange-traded funds (ETFs) on stock exchanges.
Before BTC fell below $40,000, the cryptocurrency lost a significant portion of its post-ETF gains and fell to around $49,000 to $43,000 levels, with the crypto community predicting that the price will not rise until it hits the bottom. I expected it to be loud. place. The decline also hurt miners, who have suffered an 87% drop in fees.
As of last week, the unrealized gain rate for short-term holders was hovering around 16%, and two days ago, crypto potato We reported that this number may need to fall below 0% to bottom out and expect a rise. Although BTC had recovered a bit by the time of this writing, CryptoQuant analysts have placed the margin at -10% as price support based on realized prices for short-term holders (currently between $39,000 and $37,000). Set up.
New ETF accumulates over 100,000 BTC
While BTC is on the decline, US spot Bitcoin ETF holdings continue to increase. At the time of writing, these products hold approximately 641,000 BTC, marking a significant increase since their launch on January 11th.
Grayscale’s GBTC holds the highest at 536,000 BTC. The other nine funds have accumulated approximately 104,000 BTC in total. BlackRock’s IBIT and Fidelity’s FBTC lead the new ETFs with holdings of 44,000 and 34,000 shares, respectively.
It is worth noting that before GBTC’s conversion into a spot ETF was approved, GBTC held approximately 619,000 BTC. But the constant outflow has dwindled the stash.