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Bitcoin (BTC), the world's leading digital asset, has entered the distribution phase. That is, market participants are now actively involved in selling BTC more than collecting it. This follows Bitcoin's recent bullish run and its corresponding price correction.
Effect on Bitcoin distribution rate
In an X post by Glassnode, a leading on-chain analytics platform, the Bitcoin market has moved as the Trend Trend Score (ATS) is currently at 0.21. This score is a metric used to predict the behavior of Bitcoin holders, with a score close to zero indicating circulation or selling. However, there is a score closer to one collection marks.
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Glassnode's post implies that some Bitcoin holders are selling, regardless of how long they have held the coin. This explains the current selloff in the broader digital currency market, a shift from the move in December 2024, when the market experienced a net rally.
Analysts believe this is a bearish sentiment as more investors are trying to lock in profits. This could indicate a downturn in the market which could extend the decline in current prices.
As of this writing, Bitcoin is exchanging hands at $95,248.89, representing a decline of 4.68% in the last 24 hours. The volume of trade has registered an increase of 46.66% to $69.99 billion, indicating more activity in the market.
Different views on the future of Bitcoin
Despite this opinion, the renowned author Robert Kiyosaki sees this level of distribution as an opportunity for investors. According to Kiyosaki, the sharp decline in BTC prices from $102,000 to $95,000 in the range signals an opportunity for investors to buy low and HODL.
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Kiyosaki also pointed out that the number of Bitcoin left to be mined was less than two million. This emphasizes the need for investors to accumulate the asset now that the price has temporarily declined.
However, Bitcoin critic Peter Schiff maintains a different view of Bitcoin's price action. He expects a crash soon after buyers find out the US government won't buy the coin.
Source: https://u.today/bitcoin-enters-distribution-phase-is-this-bad-for-btc-price
