Bitcoin BTC
-4.74%
A price correction was seen earlier in the week, with the digital asset falling below $42,000 on Monday.
According to ETC Group analysis, this price adjustment is linked to an increase in the circulation of Bitcoin, which is currently profitable.
“The cryptocurrency asset has been on a downward trend recently as Bitcoin investors are taking more and more profits,” André Dragosch, head of research at ETC Group, told The Block.
According to Dragosch, the overall market is in a strong profit environment, which means some investors tend to profit from their positions. According to ETC Group analysis, 88.3% of Bitcoin addresses and 77.6% of Ethereum addresses are making profits.
“These rates are close to the highest to date,” ETC said in its report.
However, the report highlighted that monetization activity occurred primarily among short-term Bitcoin holders with holding periods of less than 155 days. “Transfers of Bitcoin to exchanges for the benefit of short-term holders have reached their highest level since July this year,” the report added. This has certainly curbed the current uptrend somewhat due to increased selling pressure, the report added.
ETC group chart showing Bitcoin price and BTC realized profits transferred to exchanges.
Confirm net outflow of cryptocurrency funds
According to ETC Group analysis, the first weekly net outflow occurred from products traded on cryptocurrency exchanges since early October last week. “For the week ending Friday, we saw a total net outflow of $18.2 million,” Dragosch said.
According to the analysis, most of these outflows were concentrated in Bitcoin ETPs, totaling $13.1 million. However, the ether ETP attracted net inflows of $5.8 million.
Bitcoin was down more than 4% as of 9:20 a.m. ET. change hands For $41,980. The global cryptocurrency market capitalization also decreased by more than 4% to $1.64 trillion.
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