André Dragosch from Bitwise has highlighted a worrying trend in Bitcoin spot exchanges, reporting a decline in net buying volumes over the past three days.
Notably, there has been a substantial rise in long-term liquidations of Bitcoin, reaching levels not seen since early August when prices were lower, indicating that short-term sellers might be losing momentum.
Dragosch mentioned that many short-term wallets have sold Bitcoin at a loss, more than during previous lows in August. Market sentiment has shifted from bullish to neutral, as reflected in the Bitwise Cryptoasset Sentiment Index.
Analysis from Glassnode reveals a shift in Bitcoin supply dynamics, with illiquid Bitcoin supply hitting a record high while both highly liquid and illiquid supplies have dropped to yearly lows. This change suggests that more Bitcoin is being held long-term.
Furthermore, Bitwise Research Analyst Ayush Tripathi noted that the supply of Bitcoin owned by long-term holders—those who have kept their assets for at least 155 days—has grown since early October. This suggests that confidence in Bitcoin as a long-term investment remains strong, even as short-term demand weakens.
Bitcoin has seen notable price corrections since March, primarily due to significant sell-offs by large holders, or whales, along with substantial token unlocks increasing the altcoin supply.
Bitcoin and the whole cryptocurrency market has been through a significant decline since news broke about Iran bombing Israel.
Jay Jacobs, BlackRock’s US Head of Thematics and Active ETFs, believes there’s still a massive opportunity for Bitcoin growth, projecting the market could expand to around $5.4 trillion in the future.
Standard Chartered views Bitcoin’s recent dip below $60,000 as a typical market fluctuation, suggesting it could be a buying opportunity, according to an investor note shared with CryptoSlate on Oct. 3.