Cryptocurrencies

    Data suggests Bitcoin sell-off driven by newer investors

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    Recent data suggests that the ongoing sell-off in Bitcoin (CRYPTO:BTC) is primarily driven by newer investors, hinting that we may be nearing the cryptocurrency's price bottom as sell-side pressure begins to wane.

    The post-halving period for Bitcoin (BTC) has led to a significant market shift, transitioning into a phase of widespread net redistribution and cooling off the previous euphoric phase, as detailed in a report by Glassnode.

    This cooling-off comes after Bitcoin's impressive performance in 2024, where it not only hit but surpassed its all-time high on March 5, reaching between $60,000 and $67,500 in the following two weeks.

    Glassnode's analysis, utilising an Accumulation Trend Score, observed local distribution patterns as Bitcoin hit new all-time highs, patterns that are reminiscent of those seen in past bull runs.

    This observation indicates a shift in investment dynamics and suggests a possible foundation for future price stabilisation or growth as the current sell-off phase exhausts itself.

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