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Bitcoin Market Faces Stagnation As Long-Term Holders Dominate Amid Low Exchange Inflows

The Bitcoin market is currently in a phase of stagnation, with both demand and supply showing signs of slowing down.

Realized Cap, a key indicator of capital inflows and outflows, remains stagnant, highlighting minimal activity in the market.

Long-term holders, a critical group for gauging market sentiment, now control approximately 12.6 million BTC. Recent data shows stabilization in this group, signaling a lack of movement in their holdings.

On the supply side, Bitcoin inflows into spot exchanges have remained relatively low, especially as the market awaits the Federal Reserve’s upcoming interest rate decision.

Meanwhile, short-term holders have seen their supply levels drop to lows not seen since 2012, as their Bitcoin has flowed into the hands of long-term holders.

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One significant transaction came from Ceffu, which deposited 1,347 BTC (valued at $81.25 million) into Binance just an hour ago. Over the past three months, Ceffu has transferred a total of 16,123 BTC (worth $952 million) to Binance, with an average price of $59,043. This indicates substantial activity by institutional players, even amid broader market stagnation.

Potential Upcoming Liquidation If Bitcoin Hits Over $61K

Additionally, the futures market could see significant liquidation if Bitcoin’s price surges to $61,498, with approximately $179.70 million in potential liquidations. On the ETF front, Bitcoin spot ETFs saw net inflows of $187 million on September 17, marking the fourth consecutive day of inflows. Notably, Fidelity’s ETF (FBTC) attracted $56.6 million, while Bitwise’s ETF (BITB) saw $45.35 million in inflows. Grayscale’s GBTC, on the other hand, recorded no outflows, showing stability in institutional Bitcoin holdings.

While the market remains calm, institutional and long-term holder activity suggests that a potential shift could be on the horizon.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: thodonal/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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