Bitcoin (BTC) accumulator addresses showed a sharp increase in demand during December, with net purchases by these investors of 225,280 BTC as of December 23rd. According to To CryptoQuant.
This move represents a monthly increase of 82.6%.
Meanwhile, total sell-side liquidity, or the amount of Bitcoin available for sale on exchanges and exchange-traded funds, decreased by approximately 590,000 BTC over the same period.
Notably, this decrease in selling pressure is related to a sharp contraction from December 22nd to December 23rd, when the amount of Bitcoin available for sale decreased by 520,000 BTC.
Demand absorbs selling pressure
According to the report,The supply of over-the-counter (OTC) trading desks that process large trades decreased from more than 421,000 BTC to 403,000 BTC. These numbers suggest that investor demand will continue to absorb selling pressure.
Additionally, the liquidity ratio, which measures how quickly current supply can meet investor demand, fell from 12 months to 5.5 months in December.
CryptoQuant data also revealed that as of December 23rd, Bitcoin whales with addresses holding more than 1,000 BTC sold nearly 8,600 BTC this month.
But new investors are absorbing this supply, with the number of short-term holders increasing 3% in the past week. Short-term holders have accumulated 641,789 BTC in the past year, bringing their total holdings to 3.81 million BTC. This is just 70,000 BTC below the all-time high reached on December 15th.
Possibility of short-term decline
Bitcoin has calmed down and resumed its rise, in line with analysts' predictions, despite a ~14.2% correction since hitting an all-time high of over $108,000 on December 17th. It's progressing.
However, CryptoQuant community analyst Onatt said, Recommended Be careful as the supply of Tether USD (USDT) on exchanges is decreasing while the supply of BTC is increasing slightly.
While this may not indicate an extended bearish phase, it could signal the possibility of further decline in the coming days.
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