Even though some crypto assets perform rather well lately, Bitcoin does not appear to be among them. The world’s leading cryptocurrency struggles to reclaim the $60,000 level. With multiple metrics painting a bleak outlook, it may take a while longer to see another Bitcoin price bull run materialize.
Fewer Holders of 10+ Bitcoin
It is not entirely surprising to see some long-term investors cash out profits during the recent bull run. As Bitcoin soared past $60,000 – and subsequently remains volatile at most price levels – there will undoubtedly be some people who are tired of the fluctuations. It is much easier to invest in BTC when the momentum works in one’s favor. Dealing with volatility is not something most people are accustomed to these days.
As the Bitcoin price is now heading back to the $55,000 range, one has to wonder what drives this momentum. The 10+ BTC club is shrinking rapidly lately, indicating some cashing out is taking place. Although a few BTC here and there may not make a meaningful difference, this pressure will remain a contributing factor for some time to come.
As a four-year low for 10+ BTC holders is in the books, things look a bit bleak. While there are still over 147,000 addresses holding such a balance, there were over 157,000 holders less than a year ago. There were still roughly 154,000 holders with 10+ BTC in their wallets even a month or two ago. The recent price spike affects the desire to hold so many bitcoins in one’s wallet.
If this metric keeps heading in this direction, there will undoubtedly be bearish market pressure. As more people look to sell, the market requires more buyers to keep the price afloat. For now, the buyers have not shown up in force just yet. It may be a matter of time until that happens, but for now, it seems unlikely a Bitcoin price increase is on the horizon.
More Bearish Bitcoin Price Metrics
On a similar note, the massive exchange outflow is coming to a halt as well. Recording a monthly low at this time may not seem like a big deal, yet it confirms the influx of Bitcoin across the trading platforms. For now, the exchange outflow volume is still above 1,470 BTC, whereas it used to be over 2k BTC less than two weeks ago. Demand for BTC is lessening a bit, which will not help the Bitcoin price stay at this level for much longer.
Making matters even more interesting is the supply last active 1+ years ago. An intriguing metric, as it helps depict whether people see Bitcoin as a long-term investment. This metric hits a fresh 17-month low, which is somewhat problematic. Glassnode confirms 54.802% of the Bitcoin supply was last active over a year ago. The remainder has been part of transactions – and potential selling – in the past twelve months.
All of these metrics confirm Bitcoin is not in a position to move up in value by much. In fact, it is likely the negative momentum will drive the price lower in the coming days. it will be interesting to see how this affects the alternative cryptocurrencies on the market. Although they all saw a bullish spell, some rely on Bitcoin’s momentum a bit too much.