Selling Pressure Eases: Is Bitcoin on Track for a New High?
Bitfinex Alpha data suggests that Bitcoin could see medium-term gains despite a potential correction in Q1 2025.
This comes as selling pressure continues to fall to its lowest levels in months, with current supply able to cover demand for just 6.6 months compared to 41 months in October 2024.
Miners Cut Back on Sales:
The report showed that Bitcoin miners, who typically sell their reserves to raise capital, have cut back on their sales significantly since April 2024.
Miner flows to exchanges have declined at the start of 2025, indicating a preference to hold Bitcoin due to its steady earnings.
Long-term holders:
In addition to miners, long-term holders continue to prefer holding their coins, driven by positive indicators such as a high net unrealized profit and loss (NUPL) ratio of around 0.5.
This situation enhances market balance and reduces selling pressure, which could pave the way for further gains for Bitcoin.