Anthony Pompliano, the CEO of Professional Capital Management, mentioned on Monday that there seems to be selling pressure in the Bitcoin (CRYPTO: BTC) market, as indicated by on-chain data and insights from Binance Research.
“Sustaining convictions of long-term holders.”
In a video shared on X, Pompliano pointed out four important data points to back up his viewpoint.
First, he observed that nearly 60% of Bitcoin hasn’t moved in a year, which is a significant rise from 27% back in 2012. This suggests that Bitcoin is becoming increasingly “illiquid” over time, reflecting a growing “confidence” among long-term holders.
Second, he noted that the ratio of short-term realized value to long-term realized value is currently at an all-time low. A lower ratio indicates that long-term investors are transferring more value than short-term speculators, often marking a favorable accumulation phase during a bear market.
Third, Bitcoin balances on exchanges have dropped from 17.6% during the COVID-19 pandemic to 15% currently.
“This implies that significant future selling is probably not on the horizon,” Pompliano stated.
Finally, he mentioned that while new buyers are still relatively weak, the company is nearing a break-even point.
“We see short-term holders beginning to recover unrealized gains, suggesting that a new wave of selling pressure is unlikely,” he added.
Bears still have the upper hand
Pompliano, a vocal Bitcoin advocate, remarked last week that purchasing Bitcoin when it is “out of favor” can be a solid contrarian approach.
He has often emphasized the significance of persistence in holding. Bitcoin as a means to hedge against dollar depreciation remains a point of optimism for him, as he foresees it potentially reaching $1 million over time.
However, Bitcoin hasn’t acted exactly like a hedge recently. As concerns around the market grew, the cryptocurrency slipped below $70,000 early Tuesday. This situation might not be stable.
Panic took hold when Strategy Co., Ltd. (NASDAQ:MSTR) reportedly sold $2.5 million worth of Bitcoin, reversing its role from a major buyer to a seller.
At the time of this report, Bitcoin was trading at $69,929.85, reflecting a 4.29% decrease in the past 24 hours, according to Benzinga Pro data.
