Bitcoin price returns positive according to the query: CryptoQuant

After descending into worthless territory a week ago, the price of Bitcoin (BTC) has bounced back. Demand for the property has remained positive amid price fluctuations.

According to a weekly report from on-chain analytics platform CryptoQuant shared with Cryptopotato, BTC prices may be headed lower as the recent decline has crushed short-term holders' unrealized profit margin to 0 percent.

Bitcoin has reached the realm of worthlessness

On January 23, Bitcoin briefly hit a two-month low of $38,000. BTC's low price was reflected in the negative Coinbase premium as the asset was trading cheaply on crypto exchanges.

Another sign of BTC's low price is that Bitcoin miners are getting “extremely” low payouts. This may have fueled the selling pressure by miners as they unleashed their biggest wave of selling since May 2023 a few days ago.

In addition, short-term holders' unrealized gains fell to 0%, and they sold their assets at a loss for the first time since October. However, CryptoQuant believes that a price rally is likely to happen soon because the unknown profit margins falling to zero is a requirement for BTC to continue climbing.

Significant returns expected in H2

Following BTC's rise to the $43,000 level on January 29, buy orders dominated the perpetual futures market as traders closed their short positions due to the price increase. This is evident in the buyer-shopping ratio, which has increased by more than one for the first time since early December.

With BTC hovering around $42,100 at the time of writing, the second half of the year is believed to be record high for the cryptocurrency as the first half of the year is historically flat and slightly negative for the digital asset.

On the other hand, demand for BTC has remained positive. As the whales stocked, they increased their catch to levels seen by the end of December 2022. Additionally, outflows from grayscale exchange-traded funds (ETFs) have recently been dampened by buying from other products, notably BlackRock and Fidelity. , compensating sales.

Notably, the total BTC holdings of the other nine positions ETF rose to a new high of over 150,000.

Meanwhile, stable coin liquidity is also positive, with Tether's (USDT) market cap rising to a new high of $96 billion on January 22, a daily increase of $800 million.