What must happen for Bitcoin to mark the bottom of the environment? CryptoQuant reports

Analysts at market intelligence platform CryptoQuant have pointed out that unexpected profit margins cannot be activated until the BTC price decline signal reaches -10% for short-term holders.

According to CryptoQuant Insights weekly crypto report, profit margins for short-term holders are close to zero, which has created selling pressure. However, the leading digital asset is still undervalued.

BTC has fallen below $40,000

Earlier this week, BTC fell below $40,000 for the first time since December 3, 2023, resulting in roughly $230 million in short- and long-term liquidity. The asset recorded its lowest price since the United States Securities and Exchange Commission (SEC) approved several positions for Bitcoin exchange-traded funds (ETFs) to list on securities exchanges.

Before BTC dropped below $40,000, the cryptocurrency had lost significant gains post-ETF approval, falling from $49,000 to the $43,000 level, expecting the crypto community to lower prices as there would be no rally until anyone took it. place. The downturn has also hit miners, who are facing an 87 percent pay cut.

As of last week, short-term holders' unrealized gains were hovering around 16%, and two days ago, CryptoPotato reported that the number may need to go below 0% before we expect a call-down and rally. Although BTC has recovered slightly at the time of publication, CryptoQuant's analyst margin is currently between $39,000 and $37,000, based on price support confirmed by short-term holders at -10%.

New ETFs Amass more than 100 thousand BTC

While BTC continues to spiral downward, Bitcoin ETF holdings in the US continue to rise. At the time of writing, the products held about 641,000 BTC, marking the biggest increase since their launch on January 11.

Greyscale GBTC holds the highest, 536,000 BTC; The remaining nine funds accumulated around 104,000 BTC in total. BlackRock's IBIT and Fidelity's FBTC are leading the new ETFs, with holdings sitting at 44,000 and 34,000, respectively.

It should be noted that GBTC held approximately 619,000 BTC before the product was converted to spot EEF. But the steady flow has lessened the tension.