Equilibrium

Bitfinex Report: Selling Pressure from Long-term Holders Eases, Market May Be Approaching Equilibrium

ChainCatcher message, Bitfinex Alpha's latest report indicates that the supply of long-term Bitcoin holders has stabilized at 14.8 million BTC from 16.2 million BTC in January, suggesting a reduction in selling pressure. The supply of short-term holders has significantly increased since January, stabilizing around 4.8 million BTC, mainly due to new investors entering the market through ETFs and buying on dips during price corrections. The current price decline has left over 2.8 million Bitcoin short-term holders facing unrealized net losses; despite the bearish trend and supply pressure from Mt. Gox creditors, the market may be approaching a balance point.The upward trend over the weekend suggests a potential recovery in the short term, but the market remains sensitive to news and external influences. Monitoring the asset management of short-term holders and the market's reaction early this week is crucial for determining the short-term direction of Bitcoin prices. Additionally, the sell-off of Bitcoin in Germany seems to have ended, and the U.S. Securities and Exchange Commission (SEC) has also concluded its investigations into Hiro Systems and Paxful. However, U.S. lawmakers' attempts to overturn President Biden's veto of the SEC Staff Accounting Bulletin (SAB) 121 were unsuccessful. SAB 121 requires banks to classify cryptocurrencies as liabilities, effectively prohibiting them from providing digital asset custody services.
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