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Bitcoin's Long-Term Holders Sell, Slowing But Not Stopping Price Rise
Market analyst Axel Adler Jr from Cryptoquant reports observing an unusually high monthly and yearly Capital Destruction Rate (CDD) ratio of 0.25. This level, comparable to historical peaks in 2014 and during the correction in 2019, mainly occurs when Bitcoin prices are between $106,000 and $118,000. This indicates that long-term holders, who have held Bitcoin dormant for years, are now significantly transferring their holdings to the market to sell. Despite this surge in distribution activity, demand from the treasury sector and inflows into Bitcoin ETFs remain strong. As a result, while these seasoned investors are selling, their actions are unlikely to halt the current upward trend entirely—only modestly slowing its progress.
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AI Analysis
Axel Adler Jr's recent analysis highlights a critical phase in Bitcoin's market cycle characterized by an elevated Capital Destruction Rate (CDD). This metric, signaling the transfer and sell-off acti...
AI Recommendation
Investors should interpret the current increase in sell-off activity by long-term holders as a sign of profit-taking rather than a fundamental weakness. Given that institutional demand remains robust,...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.
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