Bitcoin selling pressure decreases as demand stabilizes: CryptoQuant

The price of bitcoin (BTC) rose from the $60,000 level to the $67,000 zone due to the news of lower than expected inflation in the United States.

According to the latest CryptoQuant Weekly report, Bitcoin's recent rally has continued despite recent selling pressure. However, demand for cryptocurrency has not yet taken off.

Bitcoin selling pressure has decreased

A drop in BTC selling pressure can be seen in short-term holders' on-chain activity and on-chain over-the-counter (OTC) tables.

The balance of BTC on OTC desks has been stable since late April, indicating a lower supply of bitcoins from market participants. On March 10, the balance on the OTC tables began to increase by 60,000 BTC, when the asset reached a peak of $73,000; However, it has been flat since the end of last month.

Similarly, short-term BTC holders' profit margins are at low or negative levels following the high profit margins that led to heavy selling pressure in early March. Traders now face unexpected losses in jobs as they have exhausted all their accumulated profits by 2024. Historically, this has coincided with local price lows.

The market is likely to be low due to the low profitability of miners. Analysts at CryptoQuant say Bitcoin miners are currently underpaid, and their profitability has fallen to levels seen just days after the Covid market crash since March 2020. Historically, extremely low mining profitability is associated with low prices.

The question is yet to be raised.

On the other hand, Bitcoin demand growth appears to be stable after a month of slowdown. The increase in the BTC balance of permanent holders and large investors shows the high interest of these market participants.

However, demand for BTC will need to increase further to allow the market to continue its recent price rally. The interest may come from the Bitcoin exchange-traded fund (ETF) market and other Bitcoin investment funds.

According to CryptoQuant analysts, the crypto market needs a new wave of space to revive demand growth. Demand for these products already seems to be on the rise, with the fund seeing more than $560 million in revenue over the past two trading days.

Furthermore, Stablecoin's liquidity growth is growing, indicating an upward trend for BTC.