According to analysts, the pressure on short-term holders of the premier cryptocurrency continues to mount, as the asset’s price remains below $104,000 for an extended time.
“The STH cohort includes addresses holding the asset for fewer than 155 days. Historically, prolonged periods of STH loss often coincide with ‘weak hands’ capitulation phases, meaning redistribution of supply toward investors with more confident sentiment,” specialists from CryptoQuant elaborated.
Until the leading cryptocurrency can rise above $104,000, conditions for new market participants will keep being difficult. Currently, the structure of the crypto market aligns more with a transitional cycle phase than a full-blown bear trend, experts opine.
Nevertheless, despite Bitcoin’s drop below $90,000, inflows into Bitcoin exchange-traded funds (BTC-ETFs) reached $864 million. Positive momentum has been observed for the third successive week. This reflects cautious yet gradually improving investor sentiment, CryptoQuant representatives concluded.
Previously, experts at Barclays, one of the UK’s largest investment banks, stated that the crypto market anticipates a significant reduction in spot trading volumes next year. This might adversely affect the earnings of crypto exchanges, crypto firms, and most investors in digital assets, the banking analysts fear.
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