Bitcoin continues to decline as investors are losing interest amid continued financial struggles

Experts believe that Bitcoin awaits an unprecedented rally in the upcoming months. Several financial analysts and key indicators have tweeted that a wide array of economic factors and regulatory decisions will continue to impact the price movements of Bitcoin, but the crypto still has the potential to outrun these circumstances and take over the reins of the crypto market. Recent data reveals that Bitcoin short-holder SOPR (Spent Output Profit Ratio) is approaching a breakeven value, a condition that has been acting as a resistance for the BTC price in the past. Based on these data, experts claim that Bitcoin short-term holders are selling off their tokens, which is one of the major triggers for Bitcoin's fresh declination to the US$23,000 resistance. It is quite an ordeal for long-term Bitcoin investors who had hoped to experience profits and a stable Bitcoin rally but are instead, continuing to lose more money.

The 'Spent Outfit Profit Ratio' is indicative of whether or not the Bitcoin market as a whole is currently selling at a profit or loss. The way the metric works determines the price of each coin before it is sold. If the previous value of any coin was less than its current, then the coin might have moved towards profits. Meanwhile, if the last selling price is lesser than the latest one, it would imply that the coin is realizing losses. Now, the short-term holders of Bitcoin insinuate those investors who sell their coins after holding them for less than 155 days, which means that these investors who are currently selling off their investments might have bought their tokens recently when its prices started plummeting aggressively. But after getting tired and impatient of waiting for profits, they are now selling off their investments.

How is this impacting the Bitcoin price?

Well, to answer the question, the Bitcoin price has plummeted back to the US$23k resistance. The wider cryptocurrency market has also been struggling to get over its struggles. Over the past week, BTC has been trading between US$23,000 to US$21,000. But, apparently, investors are not worried about this aspect. Instead, they are relieved that its prices have not plummeted down to US$18k again, and somehow managed to retain the US$21k mark, even when it plummets. After these circumstances, selling pressure on Bitcoin has surged intensely. Investors are awaiting the coin to break past the US$25,000 price mark.

With the consistent bearish trends overlapping Bitcoin and the rest of the cryptocurrency market, it is only a matter of time before major cryptocurrencies lose their price resistance and enter into a freefall. There are several reasons why the Bitcoin price is plummeting, including Terra'a major collapse in May 2022. To make things worse, the crypto market is moving in coherence with the stock market in recent months, which makes it even more entwined with global economic factors, geopolitical crises, such other parameters.

Bottom Line

If you are someone investing in cryptocurrency, you might be aware of the fact that the market moves according to investors' sentiments. Hence, experts are recommending keeping cryptocurrency investments down to less than 5% of their total portfolio. Volatility will always be a part of the cryptocurrency market, so, short-term investors selling off their investments is also a part of this volatility, which current and long-term investors should be aware of.