CryptoQuant: BTC decline driven by profit-taking and U.S. government transfer

Bitcoin holders' accumulated unrealized gains were the main driver behind the recent decline, according to CryptoQuant's analysis of on-chain data. A large Bitcoin transfer by the U.S. government contributed to the drop by increasing selling pressure, but the primary issue was that BTC holders had significant unrealized profits. The market was already susceptible to a decline before the U.S. government's transfer, as unrealized gains had accumulated. CryptoQuant noted that even a minor shock can trigger profit-taking when holders have substantial paper gains. In the past 24 hours, short-term holders sent 45600 BTC to exchanges, including 29100 BTC moved at a loss, marking the largest volume since the correction before June's rally. CryptoQuant indicated that 74600, the realized price for short-term holders, could act as a key support level, and maintaining this range could preserve the bull-market structure.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.