Bitcoin Price: Will Declining Profitability Spark a Correction?

Bitcoin Price Surges 6.08% Amidst Concerns Over Short-Term Holder Profitability

Bitcoin’s Resilience in 2025

Bitcoin (BTC) has demonstrated remarkable resilience since the start of 2025, reclaiming the $99,000 level. Over this period, the cryptocurrency has surged from $92,768 to $99,857, showcasing its potential for long-term growth.

Whales Accumulate Bitcoin

Despite the recent price upsurge, analysts have expressed concerns over Bitcoin’s current market conditions. CryptoQuant analysts have suggested a potential correction, citing declining profitability among short-term holders. According to analyst Crazzy Block, the profitability margin for short-term holders (STHs) has declined significantly, signaling weakening market demand and rising bearish sentiment.

Impact on BTC Charts

While short-term holder profitability has reduced, the market seems positioned for more gains in the short term. Other market indicators suggest that bulls are attempting to drive prices up, making a huge market correction unlikely in the short term.

Bullish Sentiment Persists

Several indicators support the notion of a strong market:

* Taker Buy-Sell Ratio: Bitcoin’s Taker buy-sell ratio has surged over the past 48 hours to reach 1.121, indicating aggressive buying activities and bullish sentiment.
* Funding Rate: The Funding Rate has risen from 0.0084 to 0.0124, showing that more traders are bullish and opening long positions, reflecting market confidence.
* Exchange Supply Ratio: The Exchange supply ratio has declined to a yearly low, implying that investors are accumulating BTC by transferring to private wallets, expecting prices to rise further.

Conclusion

In conclusion, while declining profitability among short-term holders may signal a potential correction, the market still appears strong, especially in the short term. With bullish sentiments prevailing and buyers regaining control, Bitcoin may reclaim the $100,000 level and surge to $102,777. However, if a correction occurs, the price may drop to $95,000.

Source: Ambcrypto.com

Please follow and like us:
Bitcoin Price: Will Declining Profitability Spark a Correction?
Pin Share
Join Our Telegram Group

Join Our Telegram Group for the Latest Crypto News!

Stay ahead in the cryptocurrency market with timely updates, exclusive insights, and expert analysis. Join our Telegram group now and never miss out on important market movements!

Join Now

More From Author

Calamos Launches World’s First 100% Downside Protection Bitcoin ETF

Bitcoin Surges Past $101,000 with 3.32% 24-Hour Gain

Leave a Reply

Your email address will not be published. Required fields are marked *