Bitcoin Enters Distribution Phase, Is This Bad for BTC Price?

U.Today - Bitcoin (BTC), the world’s leading digital asset, has entered the distribution phase. That is, market participants are now actively engaged in selling BTC more than accumulating it. This follows the recent bullish run of Bitcoin and its corresponding price correction.

Implication of Bitcoin’s distribution phaseIn an X post by Glassnode, a leading on-chain analytics platform, the Bitcoin market has shifted as the Accumulation Trend Score (ATS) currently stands at 0.21. This score is a metric used to predict the behavior of Bitcoin holders, with a near-zero score showing distribution or selling. However, a score closer to one signals accumulation.

Glassnode’s post implies that some Bitcoin holders are selling, regardless of how long they have held onto the coin. This explains the current sell-off in the broader cryptocurrency market, a shift from the trend in December 2024, when the market experienced net accumulation.

Analysts consider this a bearish sentiment as more investors seek to lock in profits. This could signal a downturn in the market that might extend the current price slump.

As of this writing, Bitcoin is exchanging hands at $95,248.89, representing a 4.68% decline in the last 24 hours. The trading volume has registered an uptick of 46.66% to $69.99 billion, signaling increased activity on the market.

Divergent views on Bitcoin's futureDespite this bearish sentiment, renowned author Robert Kiyosaki sees this distribution phase as an opportunity for investors. According to Kiyosaki, the massive decline in BTC prices from $102,000 to $95,000 in the zone marks an opportunity for investors to buy low and HODL.

Kiyosaki also highlighted the decreasing volume of Bitcoin left to be mined as less than two million. This emphasizes the need for investors to accumulate the asset now that the price has experienced a temporary decline.

However, a Bitcoin critic, Peter Schiff, holds a different perspective on Bitcoin’s price action. He foresees a crash soon after buyers realize the U.S. government will not buy the coin.

Source: Investing.com