The reason for the recent declines in Bitcoin (BTC) may be profit-taking by short-term investors.
Bitcoin experienced serious losses in value on December 11 for $40,300 When he retreated, all eyes turned to the reason. André Dragosch, Head of Research at ETC Groupin the snow Bitcoin And Ethereum (ETH) of the number to this year’s highest levels He pointed out that profit sales put pressure on the price:
As Bitcoin investors gained more and more profits, a selling pressure was created, and the cryptocurrency has experienced retreats in this direction in recent days.
In ETC Group analysis, Bitcoin addresses 88.3% of and Ethereum addresses 77.6% in snow It was stated that . However, the real selling pressure is less than 155 days highlighting that it comes from short-term investors who have been holding Bitcoin for a long time. Dragoschstated that such sales will not go beyond short-term corrections:
Profitable Bitcoin transfers to exchanges by short-term holders have reached the highest level since July this year. This has definitely put a damper on the current rally due to increased selling pressure.