- Analysts suggested that long term prospects for Bitcoin looked positive.
- Miner revenue continued to decline despite high hashrates.
Bitcoin’s [BTC] volatility over the last few months has turned many in the crypto community skeptical towards the king coin. However, upon looking at BTC’s progress from a long-term perspective, many analysts see a positive future.
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According to Maartun, a CryptoQuant analyst, the declining exchange reserves for Bitcoin are a positive indicator. As more people and institutions acquire and hold the king coin, the available supply on exchanges decreases, thus increasing its scarcity.
When holders withdraw their coins from exchanges and store them in personal wallets, it shows confidence in Bitcoin’s future and reduces selling pressure.
Source: CryptoQuant
Additionally, the percentage of Bitcoin held by long-term holders was similar to previous cycles. The similarity in the percentage of Bitcoin held by long-term holders in previous cycles suggested stability for the coin.
Thus, a significant portion of investors were adopting a long-term perspective and holding onto their assets. These long-term holders were also less likely to engage in short-term trading or panic selling, contributing to the overall stability of the cryptocurrency’s price.
Source: CryptoQuant
Miners hold Bitcoin hostage?
Bitcoin’s hashrate was at an all-time high at press time. A high hashrate indicates robust network security and computational power dedicated to mining and validating transactions.
However, it is worth noting that a negative implication of a high hashrate is the increased energy consumption associated with mining.
Source: Blockchain.com
The declining miner revenues could increase sell pressure on the miners, which could end up impacting the overall price of BTC.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
At press time, BTC was trading at $25,742.87, according to CoinMarketCap’s data. Traders were increasingly optimistic about Bitcoin’s future, as indicated by BTC’s put to call ratio, which was at 0.46.
A ratio below 1 suggests a higher demand for call options, which are often used by traders to speculate on the upward movement of an asset.
Source: TheBlock