Bitcoin's Accumulation Trend Score dropped to 0.21, suggesting a movement into the distribution stage. The latest US economic data triggered notable sell-offs in both the stock and crypto markets. BTC's MVRV ratio indicates that Bitcoin is yet to reach extreme euphoria in the current market cycle. Bitcoin (BTC) experienced a 2% decline on Wednesday as the cryptocurrency market grapples with recent losses.
On-chain data has indicated a shift in the accumulation of the leading cryptocurrency, suggesting that holders are increasingly selling their assets. Despite this shift towards distribution, Bitcoin's Market Value to Realized Value (MVRV) ratio suggests that the current market cycle has not yet reached its peak. Bitcoin declines to $94K, stirs mixed sentiment among investors Bitcoin stretched its decline into Wednesday, falling toward $94,000 and sparking over $134 million in liquidations, per Coinglass data. On-chain data from Glassnode revealed that Bitcoin's Accumulation Trend Score dropped to near 0, indicating a shift in the market toward a distribution phase. The metric approached a score close to 1 across most cohorts of holders during the rally between November and December, signaling steady accumulation. However, investors across all cohorts have slowly increased distribution in the past few days, with ultra-large holders leading the charge. Bitcoin Trend Accumulation Score by Cohort. Source: Glassnode The selling pressure may have been fueled by headwinds from stronger-than-expected US ISM Services Purchasing Managers Index (PMI) and job openings reported by the US Bureau of Labor Statistics for November 2024. Likewise, Crypto analyst Markus Thielen stated in a recent memo that global liquidity shifts could threaten Bitcoin's bullish momentum. Following the Trump re-election, the strengthening US dollar has tightened dollar-denominated liquidity, signaling the potential for a consolidation phase in the near term, Thielen wrot