PakGazette – (BTC), the world’s leading digital asset, has entered the distribution phase. That is, market participants are now actively involved in selling BTC rather than hoarding it. This follows Bitcoin’s recent bullish streak and its corresponding price correction.
Bitcoin Distribution Phase Implication
In an X post from Glassnode, a leading on-chain analytics platform, the Bitcoin market has changed 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 score close to zero showing distribution or selling. However, a score closer to one indicates accumulation.
Glassnode’s post implies that some Bitcoin holders are selling, regardless of how long they have held the currency. This explains the current sell-off in the broader cryptocurrency market, a change from the trend in December 2024, when the market saw net accumulation.
Analysts consider this bearish sentiment as more investors look to lock in profits. This could indicate a slowdown in the market that could extend the current price decline.
At the time of writing, Bitcoin is trading at $95,248.89, representing a drop of 4.68% in the last 24 hours. Trading volume has seen an increase of 46.66% to $69.99 billion, indicating increased activity in the market.
Divergent opinions on the future of Bitcoin
Despite this bearish sentiment, renowned author Robert Kiyosaki sees this distribution phase as an opportunity for investors. According to Kiyosaki, the massive drop in BTC prices from $102,000 to $95,000 in the area marks an opportunity for investors to buy at low prices and HODL.
Kiyosaki also highlighted the dwindling volume of Bitcoin left to be mined: less than two million. This emphasizes the need for investors to accumulate the asset now that the price has seen a temporary drop.
However, a Bitcoin critic, Peter Schiff, has a different perspective on Bitcoin’s price action. He expects a drop soon after buyers realize that the US government will not buy the currency.
