Commenting on the current risk-asset landscape, trading firm QCP Capital emphasized the effects of US President Donald Trump’s trade tariffs, saying that they could escalate trade tensions. “Any further retaliation from these target economies risks injecting a fresh wave of uncertainty into an already volatile global trade landscape,” it wrote in a Telegram note to investors. QCP also pointed out that “sentiment remains subdued despite headline-grabbing catalysts” such as GME’s surprise $1.3 billion capital raise for potential Bitcoin purchases. The only positive catalyst is the steady inflow into spot BTC ETFs, totaling $944.9 million since March 11, adding:“This presents a telling divergence that reflects the market’s bifurcated institutional conviction.”Bitcoin could drop further on waning demandDemand for Bitcoin remains relatively low, implying a decline in risk appetite for potential investors, according to market intelligence firm Glassnode.
The difference between long-term holder (LTH) profit taking and short-term holder (STH) loss realization has dropped sharply since the $109,000 record high and returned to a “neutral zone.”This means that an equivalent volume of STH losses is now offsetting LTH profits, the report explained, adding:“This suggests a relative stagnation in new capital inflows, weaker demand-side forces, and a slowing but still meaningful volume of profit taking acting as resistance.”Bitcoin: Difference between LTH realized profit and STH realized losses.
Source: GlassnodeGlassnode concludes that while the STH cohort is dominating losses taken, the LTH cohort is transitioning back into a period of accumulation, which could be a precursor to Bitcoin’s recovery.“We expect their aggregate supply to grow in the coming weeks and months as a result.”As reported by Cointelegraph, Bitcoin LTHs continued to hold profits despite the recent sell-off, indicating a strong belief that the bull market rally would eventually resume.
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Author / Journalist: Cointelegraph by Nancy Lubale
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