The price of Bitcoin has fallen over the past 24 hours as selling pressure increases, falling below the $42,000 level. The world’s largest cryptocurrency by market capitalization fell 3% over the past 24 hours to $41,998 as of 1pm ET, according to data from The Block.
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The retracement follows an increase in factors contributing to selling pressure on digital assets, particularly among the short-term holder population.
According to CryptoQuant data, more than 25,000 bitcoins were transferred from cold wallets to exchanges in the last 24 hours. These movements contribute to the provision of liquidity for the asset and thus influence its price dynamics.
Bitcoin’s profitable circulating supply is nearing its annual high of 90%, with the current measure standing at 89.4%, according to The Block’s data dashboard. Additionally, data from The Block shows an increase in trading activity among the short-term group of holders of digital assets who have held them for 90 days or less.
Bitcoin network transactions surge
Meanwhile, transactions on the Bitcoin network hit an all-time high. The number of transactions on the Bitcoin network hit an all-time high of 633,000, according to data from The Block. Daily trading volume on the Bitcoin network currently exceeds $28 billion.
That’s a turnaround from the annual high of $38 billion in mid-December, but still nearly double the volume seen in November and October this year.
Recent volatility in the Bitcoin market resulted in the liquidation of over $44 million in leveraged positions. According to data from Coinglass, most of these liquidations were short sales, with more than $38 million liquidated in the last 24 hours, while only about $6 million was wiped out from long positions.
Spot Bitcoin ETF Approved
Currently, Bitcoin’s annual increase rate is over 155%. The digital asset’s rise has been fueled in large part by optimism that the Securities and Exchange Commission is preparing to approve one or more of the spot Bitcoin ETF applications submitted to the regulator. More than a dozen companies, including BlackRock, WisdomTree and Valkyrie, are awaiting SEC approval.
Analysts expect a spot Bitcoin ETF to be approved in the first quarter of 2024. However, André Dragosch, head of research at ETC Group, believes that “approval will initially only lead to a short-term price surge.”
However, Dragosh added, “However, the capital flowing into Bitcoin will likely lead to the digital asset price doubling over time by 2024.”
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