Bitcoin Completes Short-term Liquidation by Holders and Miners, CryptoQuant: Bull Market Far from Over

CryptoQuant, a financial analytics firm, recently released a report stating that the cryptocurrency bull market is far from over, as many price indicators differ significantly from the peak levels of the previous bull market.

Bitcoin Short-Term Holders and Miners Selling Off

According to CryptoQuant, traders sold off Bitcoin at the highest profit level since May 2019, indicating that short-term holders took profits following the new all-time high of BTC. Additionally, large Bitcoin holders also sold off their holdings, with a total of 567,000 BTC transferred on March 12, accounting for 35% of the total Bitcoin network transfer volume. CryptoQuant noted that some of these large holders are Bitcoin miners.

Cryptocurrency Bull Market Far from Over

CryptoQuant also found that although the unrealized profit ratio briefly surged to the highest level since the 2021 bull market at 69% and Bitcoin experienced a week-long decline, the unrealized profit ratio still remains at a high level of 47%. This leads them to believe that the bull market is far from over. Furthermore, the current inflow of funds from short-term Bitcoin holders accounts for only about 48%, a number that would typically be around 84%-92% during a true bull market cycle.

Yonsei_dent, the author of the CryptoQuant platform, also pointed out the similarity in the trend of “Coin Days Destroyed (CDD)” between the shift from long-term holders to short-term holders in Bitcoin and the trend in the second half of 2020. All of this suggests that the bull market may be just beginning.

Note:
CDD refers to the time period (in days) between two transactions involving a specific amount of Bitcoin.

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