Bitcoin price fell more than 5% today to $43,212. So why did this decline occur? There are many reasons for this, but the main reason for the decline is clear. There has never been a time when we have seen a sustained increase in Bitcoin prices, and while various reasons may cause a temporary correction, everyone needs to be aware of investor sentiment.
Why Is Bitcoin Falling?
As the selling continued, BTC price dropped to around $43,000. On the technical side, we have already shared the targets we announced at the beginning of the decline. On the on-chain side, there was data we had been highlighting for days. While everyone is FOMO about the interest in ETFs, popular Turkish crypto analyst Barış Kardeş (Kardeş Barış) warned investors that the profitable supply is based on 95%.
“Friends, this indicator tells us; When my metric gets to 95% and above, there is a high probability of a decline. “Oh, I don’t know whether this will be a fix or a crash, but according to my working logic, follow these levels carefully.”
This indicator, which is followed closely by many experts, is considered a bearish signal because it assumes that investors who have already made a profit can sell at any time. It was not surprising that this situation occurred when ETFs received approval and began to be traded on stock exchanges.
We can track a much broader range of investor behavior on-chain, giving us a much better understanding of investor psychology. Miner profitability, sales growth, profit situation, density of working miners, etc.If the profitability of the investor’s wallet is high (if we talk about 95 percent, which is actually quite a high number), he will sell here. As a result, we can see that the BTC price has fallen.
If the profitability of the investor’s wallet is high (if we talk about 95 percent, which is actually quite a high number), he will sell here. As a result, we can see that the BTC price has fallen.
Cryptocurrencies Will Rise
There is no need to be a prophet for this. The 2024 calendar tells us that the market will rise even if we see these corrections or similar or even harsher corrections. Investors have many compelling reasons to believe this based on historical data.
First, we are in the very early stages of ETFs spreading around the world and seeing real inflows. We expect Coinbase custodial wallet holdings to grow rapidly as demand for these ETF issuers increases. Naturally, this will lead to a supply shortage.
Bitcoin block rewards are scheduled to be halved in April, meaning the selling pressure from miners will ease and new supply to exchanges will decrease even further. If new supply in circulation shrinks as ETFs generate a strong wave of demand, we can expect upward momentum to increase.
Unless mid-year macro indicators continue to be extremely weak, interest rate cuts will begin. Short-term fluctuations may occur during this period, but in a world where the dollar is weak, risky assets such as cryptocurrencies are also expected to grow.
Elections are held in the United States at the end of the year in November, and a significant number of candidates are making statements in favor of cryptocurrencies. The retreat of crypto rivals like Gensler and Biden could be a motivating fact
