Bitcoin has experienced significant sell-side pressure since the beginning of the year, marking its latest distribution phase as identified by Glassnode. The Accumulation Trend Score, which tracks changes in aggregate on-chain balances, indicates a likelihood of continued selling, particularly influenced by larger entities in the market. Prior to late February, there was an observable pattern of accumulation between $95,000 and $98,000, which has shifted to a weaker range of $78,000 to $92,000. This suggests a decline in investor interest and demand strength, as noted by Glassnode, which reflects broader sentiments influenced by economic uncertainties and the looming threat of a US recession. While investing in bitcoin is often seen as a way to diversify away from macroeconomic factors, the reality is that institutional investors, who currently hold significant exposure, are more inclined to sell it when market conditions are unfavorable. This dynamic has yet to align with the narrative of bitcoin as a dependable store of value, often referred to as “digital gold.” The market is still navigating through its cycles, and confidence appears shaken among investors amidst current macroeconomic challenges.

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