The recent price sell-off is considered to be a needed correction to wipe out the traders’ unrealized profits. In general, such sell-offs should be taken as a bottom signal in a bull market that can bring a trend reversal. After this sell-off, the traders’ unrealized profits have fallen dramatically, according to CryptoQuant data. Bitcoin is currently trading at $64,611, with the market likely to drop further in the following days.
Traders’ Unrealized Bitcoin ($BTC) Profits Hit Lowest Level Since February
In particular, these profits are now at their lowest level since the beginning of February and currently make up only 10% of traders’ portfolios. The recent price movements also brought cryptocurrency prices closer to the traders’ realized price of $58,000.
In this regard, the current prices in the market are more aligned with the prices at which traders have bought and sold Please enter Coingecko Free Api Key to get this plugin works. The convergence between current and realized price is a potential sign that market valuations are returning to normal.
Bullish Sentiment Persists Despite Market Sell-Off
However, despite the recent market sell-off, investor sentiment is still bullish. While the event likely caused trader losses in the short term, it also created a perfect opportunity for long-term investors to enter the market at significantly better and cheaper prices.
Overall, this sell-off is attributed to a market correction and consolidation, which is a natural market cycle. Therefore, investors should still be cautious and monitor the market closely.
