Last week, the cryptocurrency market dipped as liquidations soared. Around the same period, altcoins attempted to recover while Bitcoin struggled to sustain momentum above the $70,000 price.
Following the new development, market players have raised major concerns about the downsides of certain market activities from Bitcoin investors.
Notably, onlookers have raised concerns over the possibility of Bitcoin from long-term holders going into exchanges.
In a recent analysis shared with CryptoQuant, a market analyst explained the current market pattern while citing the difference between previous and current market patterns.
“Bitcoin bull market is correlated with a sharp decline in long-term holders. I won’t mention this separately as it has been explained frequently. And the supply of long-term holders is being deposited into exchanges for profit-taking, but that’s not the case for the 24-year bullish cycle. One significant reason for this is that BlackRock, which has been buying the most Bitcoin since the ETF approval, is active over-the-counter (OTC).” The analyst asserted.
As a result of the current trend, the analyst explained that despite a sharp decline in Bitcoin holdings by long-term holders after the ETF approval, Bitcoins are not being deposited into exchanges. On the flip side, if the pattern continues, the market might be on the verge of experiencing a colossal price dip. BlackRock and Bitcoin deposit patterns can also affect the market pattern.
As the analyst added,
“However, if it persists, there is a possibility that long-term holders may start depositing Bitcoin into exchanges in the same way as before. If that happens, the likelihood of price dumping increases. It’s important to pay attention to both BlackRock’s net inflow movements and the movements of Bitcoin deposits into exchanges.” He added.
Meanwhile, the new week is kicking off with Bitcoin attempting to make a comeback. After falling below the $70,000 price point, the asset hit a low of $65,423, further strengthening bearish sentiments.
