Key Points
- Bitcoin (BTC) has realized $5.42 billion in profits, with the Sell-side Risk Ratio surging to 0.524%.
- Bitcoin’s market remains resilient despite recent price drop, with its network activity reflecting growing adoption.
Bitcoin (BTC) has experienced a significant gain, realizing $5.42 billion in profits.
This was noted by market analyst Ali, who pointed out that the Sell-side Risk Ratio had surged to 0.524%.
This metric is used to evaluate the risk-reward balance for sellers.
Selling Pressure Not Extreme
Despite the rise in the Sell-side Risk Ratio, it remains below historical highs.
This suggests that selling pressure has not yet reached extreme levels.
Traders, however, are advised to exercise caution as profit-taking intensifies.
The figures for realized profit surged ahead of realized losses.
Profits spiked towards $8 billion while losses remained subdued at roughly $1 billion at press time.
This imbalance is indicative of market optimism, with more investors capitalizing on gains rather than selling at a loss.
Bitcoin’s Market Resilience
Despite a recent price drop, Bitcoin’s market remains resilient.
The cryptocurrency was trading above $91,000 at press time, with a 24-hour trading volume of $84.43 billion.
Despite a recent correction, BTC hiked by just under 4% in the last 24 hours.
Data from IntoTheBlock revealed that 307,000 addresses accumulated Bitcoin around an average price of $89,200.
This could act as a crucial zone of support or resistance, depending on the market direction.
Network Activity Reflects Growing Adoption
Bitcoin’s price hike correlated with an increase in network activity.
Data showed an uptick in both new addresses and active addresses, indicating heightened participation.
New addresses have risen steadily too, reflecting fresh inflows of users into the ecosystem.
Active addresses, representing daily transaction participants, also climbed to ~1.1 million, showcasing sustained network engagement.
Meanwhile, the number of zero balance addresses has remained relatively flat, indicating no noticeable increase in dormant or abandoned wallets.
This trend suggests sustained trust and engagement from the community, even as Bitcoin’s price fluctuates on the charts.
Potential Short-term Selling Pressure?
On 15 November, net inflows of $128.46 million were recorded, suggesting a potential increase in selling pressure.
Historically, higher inflows to exchanges have been associated with short-term corrections as traders look to capitalize on recent gains.
Despite this, Bitcoin’s performance has remained strong, supported by periods of accumulation earlier in the year.
Between May and August, consistent negative netflows indicated large-scale withdrawals from exchanges, often linked to institutional investors or long-term holders.
This accumulation phase likely fueled Bitcoin’s recent rally, which saw the price climb from $25k to over $90k.
Uncertainty surrounding regulatory policies and national debt levels could influence Bitcoin’s future price trajectory.
The new administration may introduce fiscal measures to address debt concerns, which could heighten inflationary risks.
Moreover, with the Bitcoin/Gold ratio peaking at 35, Bitcoin is now valued at 35 times gold’s price, marking a yearly high.
This is a sign of Bitcoin’s ongoing outperformance against traditional assets, even amid macroeconomic uncertainty.