Binance Releases Surprise Bitcoin (BTC) Report: “Four Data Points Clearly Explain the Current State of Bitcoin!”

Bitcoin (BTC), the leading cryptocurrency, briefly rose above $82,000 in recent weeks but failed to maintain that level.

Renewed tensions between the US and Iran, along with rising inflation concerns in the US, have caused Bitcoin to fall below $77,000.

As Bitcoin continues to be affected by macroeconomic developments, Binance Research has published its latest detailed report on Bitcoin.

According to Binance Research, four on-chain indicators suggest that selling pressure on Bitcoin is weakening.

The Binance Research team analyzed four on-chain indicators that suggest selling pressure on Bitcoin is weakening. The company pointed to several factors:

“1) Over 60% of the addresses have held BTC for more than a year: This indicates a decrease in circulating volume in the market as the long-term holding trend strengthens.”

2) Long-term investors dominate the market.

3) The supply of BTC on exchanges is decreasing: Even during the COVID-19 pandemic, the percentage of Bitcoin held by exchanges was approximately 17.6%, but this has now fallen to 15.0%. Based on this, it is estimated that approximately 500,000 BTC have left exchanges. The market generally interprets the decrease in the percentage of assets on exchanges as a signal that short-term selling pressure is decreasing.

4) Short-term investors have exited their unprofitable positions and have unrealized profits: At this point, the STH MVRV indicator, which shows the profitability of short-term investors, has also recently risen above 1.0. The indicator remained below 1 for a significant period since last November. This means that current investors have re-entered the unrealized profit zone.

The Binance Research team concluded that these indicators suggest a low probability of a new wave of selling pressure and that the current market phase exhibits a typical pattern often seen before a sustained recovery.

*This is not investment advice.

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