Bitcoin short-term holders in profit as the ratio reaches to two-year high

by
Bitcoin
Bitcoin short-term holders in profit as the ratio reaches to two-year high

Bitcoin (BTC) rose from $16,500 to the current price of $21,130 in the first 17 days of 2023. While investors might be excited about the recent bullish momentum, the on-chain intelligence platform Santiment expects a “short-term price reversion.”

Per Santiment, as the macroeconomic situation still shows signs of fluctuation, investors must be cautious about cryptocurrencies since the asset class is liquidity-driven.

“I would be cautious with how far we get before the macroeconomic environment state settles itself.”

NeuroInvest, Santiment analyst

The analyst states that the short-term altcoin rally has been showing signs of overheating while the long-term holders are still sticking to their assets. 

Moreover, Santiment data suggests that the profit ratio for the flagship cryptocurrency, bitcoin, reached an almost two-year high level of 1.09 — which was previously noticed in February 2021. For the second-largest digital currency, ethereum (ETH), the numbers reached a 15-month high of 1.34 — which was seen in October 2021.

Santiment believes traders are taking this opportunity to profit while given a chance.

The on-chain analytics provider CryptoQuant is also expecting a bear trend as the BTC reserves on spot exchanges saw a rally. Data shows investors have been transferring their assets from cold wallets to spot exchanges for profit taking.

As the selling pressure is hiking, the stablecoin reserves show signs of a drop, per CryptoQuant data. This movement could mean a short-lived recovery rally since more demand is needed for the rally to be sustainable.

Follow Us on Google News

Read more about

Wahid Pessarlay

Wahid is an experienced writer, interested in everything decentralized since 2019. Before joining Crypto.News, he wrote for some of the top DeFi and CeFi outlets, bringing in millions of views and educating readers with his knowledge of the industry.