XWIN Japan and DeFi Asset Management commented on recent trends, stating,
The current developments indicate that conditions for a market bottom are beginning to improve. For confirmation, we need ongoing ETF inflows, enhanced U.S. spot purchasing, and a steady recovery in demand.
Market Experts Express Concern Over Bitcoin
According to Benjamin Cowen, the CEO and founder of ITC, the current data regarding Bitcoin’s profitability highlights a shift in the market landscape.
The chart indicates that around 71.04% of Bitcoin’s supply is currently in profit, while 28.96% is at a loss. Although the majority of holders are still in profit, the considerable portion facing losses suggests that market tension remains high.
Additionally, crypto analyst Maartunn pointed out weakening demand from U.S. institutions, noting that the Coinbase Premium Gap has drastically fallen to about -$107.
For those unfamiliar, a significant negative premium typically means that Bitcoin is trading at a discount on Coinbase compared to other exchanges.
Is a Bottom for Bitcoin Approaching This October?
Simultaneously, Glassnode confirmed ongoing bearish pressure on Bitcoin in their weekly analysis.
The report revealed that declining indicators in Spot, Futures, and ETF markets—coupled with moderate risk signals—are putting strain on what little rally has emerged recently.
Moreover, CoinGlass data intensified the concerns, revealing that 169,781 traders were liquidated in just the past day, bringing total liquidations to a staggering $811.79 million.
Is There Hope for $BTC?
All of this unfolded while Bitcoin was trading at $83,220.70 at the time of this report. Additionally, $BTC ETFs experienced outflows of $65.40 million on October 12.
Amid these mixed signals regarding Bitcoin’s future, AMBCrypto noted that Bitcoin appears to be in an accumulation-to-neutral stage, hinting that a more stable rally may still be on the horizon.
Key Takeaways
- Bitcoin is grappling with challenges, but with 71.04% of its supply in profit and 28.96% in loss, there may be potential for improvement.
- However, the total liquidations reaching $811.79 million in the last 24 hours still contribute to a climate of uncertainty.