Bitcoin
Is the Worst Behind Bitcoin (BTC) Following Monday’s Price Drop?
“Black Monday.” That is what the broader market termed Bitcoin’s (BTC) price correction from $58,000 to $49,000 on August 5. For experienced players who have seen the bull and bear of different cycles, that incident was not surprising.
While the event caused a plethora of large-scale liquidations, participants may wonder whether that was the worst one-day correction. This on-chain analysis gives more context to this thought.
Bitcoin Not Overvalued Yet, Future Gains Possible
To answer this question, BeInCrypto looks at key metrics that have repeatedly been recognized as crucial to BTC. One of them is the Market Value to Realized Value (MVRV) ratio. The MVRV ratio offers insights into the profitability of the market.
A spike in the ratio suggests that Bitcoin holders have a good level of unrealized gains, suggesting a higher probability of selling. However, when the ratio decreases, profits reduce, and holders have a lower chance of selling.
Historically, this metric also tells when Bitcoin is undervalued, overvalued, and close to the peak of the cycle. At press time, data from IntoTheBlock shows that the MVRV Ratio is 1.76.
In past cycles, the ratio reached a higher reading than the bull market can be termed “over.”. However, despite BTC’s impressive price performance at some point, the metric shows that the price has not reached its peak.
Putting it into context, Juan Pellicer, Senior Researcher at IntoTheBlock, explained that BTC, like other cryptocurrencies, is yet to reach an overvalued point.
“Most assets have yet to approach their historic overvaluation ranges. For example, Bitcoin’s highest MVRV this year peaked at around 2.64, whereas in the previous cycle, it reached as high as 3.68. For many altcoins, the difference is even larger.” Pellicer told BeInCrypto
Based on this comment and the historical analysis above, BTC’s recent decline is likely a discount. At press time, the coin trades at $57,255. This price means that it is still 22.37% down from the all-time high (ATH) it reached in March.
Retail Investors Hesitant, But There’s a Way Out
It is worth noting that institutional investors were the main driver of the rally to a new ATH through the Bitcoin ETFs. It is also important to mention that once the ETF netflow began to dry up, BTC price faced a notable decline.
In fact, amid the flash crash on August 5, netflows of the ETFs were negative. However, recent data shows that this may no longer be the case. This is because of the $45 million total daily netflow recorded on August 7.
When compared to previous net positive flows, this is a low figure. At the same time, it could serve as the beginning of Bitcoin’s price stability, provided it is sustained.
Read More: What Is a Bitcoin ETF?
Should this be the case, this worst could be over for BTC, and the price may not drop below $50,000 again for a while.
Furthermore, Bitcoin’s potential does not lie solely in the capital these institutions have. Recall that, in previous bull markets, the coin did not have this kind of institutional adoption.
However, the coin has not experienced anything close to the kind of retail participation it had in the 2017 and 2021 market boom. During our conversation, Pellicer also weighed in on this, saying that:
“The number of active addresses on Bitcoin has been trending down since November 2023. This is typically a bearish sign for the entire market, as new participants in the Bitcoin market can serve as a proxy for new entrants to the industry.”
On several occasions, BeInCrypto noticed that a good level of retail interaction with BTC begins when the number of active addresses is over one million. But, according to Santiment, the metric has struggled to reach this region since March.
However, on-chain shows an uptick in active addresses as it notched 717,000 at press time. If this metric continues to jump, then BTC’s price may slowly move upwards, erasing the chunk of losses it has had in recent times.
BTC Price Prediction: Bulls Want $60,000 First
From a technical perspective, Bitcoin may not experience such a massive price drop in the short term. This is because of the signals shown by the Balance of Power (BoP), a technical tool used to measure the strength of buying and selling in the market.
If it is negative, it means selling pressure is intense. However, at press time, it is positive, indicating that market participants are buying the coin. If this continues, BTC may note an uptick that may cost close to $60,000.
Additionally, the Bollinger Bands (BB) provide insight into the volatility around the coin. In simple terms, the BB shows how rapid price fluctuations may occur and tells if a coin is overbought or oversold.
When the indicator’s upper band hits the price, it is overbought. But when it touches the lower band, it is oversold. The image below shows that BTC was oversold on August 7, when the price was $54,594.
Read More: Bitcoin Halving History: Everything You Need To Know
The expanding bands, coupled with the recent buying pressure, suggest that the coin could continue to undergo a rebound. If this is the case, BTC may hit $60,534 in the short term. On a mid to long-term horizon, the price could reach $71,996.
However, in a worst-case scenario, accompanied by intense selling pressure, BTC may drop to $54,482.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Michael Saylor announced that Strategy purchased nearly $2 billion worth of Bitcoin. This is a massive leap over last week’s purchase, which was already quite substantial.
Nonetheless, the firm was only able to make this acquisition thanks to major stock offerings. Bitcoin’s price has been sinking over the last few weeks, and this could mature into a potential liquidation crisis.
Strategy Maintains Bitcoin Purchases
Since Strategy (formerly MicroStrategy) began acquiring Bitcoin, it’s become one of the world’s largest BTC holders. This plan has totally reoriented the company around its massive acquisitions, inspiring other firms to take up the same plan.
Today, the firm’s Chair, Michael Saylor, announced another purchase, much larger than the last few.
“Strategy has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, Strategy holds 528,185 BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin,” Saylor claimed via social media.
Strategy’s latest Bitcoin acquisition, worth just shy of $2 billion, is a major commitment. In February, the firm made a similar $2 billion purchase, and it was followed by a tiny $10 million buy and a $500 million one. The $500 million purchase, which took place on March 24, only happened thanks to a huge new stock offering. This move further cements Strategy’s faith in BTC.
By making these billion-dollar buys, Strategy is able to buttress the entire market’s confidence in Bitcoin. However, investors should be aware of a few potential cracks.
First of all, Bitcoin’s performance is a little subpar at the moment. Despite hitting an all-time high recently, Bitcoin is having its worst quarter since 2019, and there is not much forward momentum.
This could cause a unique problem for the company. Since Strategy is a cornerstone of market confidence, it is unable to offload its assets without jeopardizing Bitcoin’s price.
The firm’s debts are growing at a fast rate, and this could have dangerous implications if Bitcoin keeps falling. Strategy could be forced to liquidate, even if that seems unlikely now.
Still, it’s important to remember that these are only possible scenarios. Strategy has maintained its consistent Bitcoin investments for nearly five years, and it’s paid off tremendously well. However, if it keeps taking on billions in fresh debt obligations, this faith will turn into a gamble with very high stakes.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin (BTC) is on track to end Q1 with its worst performance since 2019. Without an unexpected recovery, BTC could close the quarter with a 25% decline from its all-time high (ATH).
Some analysts have noted that experienced Bitcoin holders are shifting into an accumulation phase, signaling potential price growth in the medium term.
Signs That Veteran Investors Are Accumulating Again
According to AxelAdlerJr, March 2025 marks a transition period where veteran investors move from selling to holding and accumulating. This shift is reflected in the Value Days Destroyed (VDD) metric, which remains low.
VDD is an on-chain indicator that tracks investor behavior by measuring the number of days Bitcoin remains unmoved before being transacted.
A high VDD suggests that older Bitcoin is being moved, which may indicate selling pressure from whales or long-term holders. A low VDD suggests that most transactions involve short-term holders, who have a smaller impact on the market.
Historically, low VDD periods often precede strong price rallies. These phases suggest that investors are accumulating Bitcoin with expectations of future price increases. AxelAdlerJr concludes that this shift signals Bitcoin’s potential for medium-term growth.
“The transition of experienced players into a holding (accumulation) phase signals the potential for further BTC growth in the medium term,” AxelAdlerJr predicted.
Bitcoin’s Sell-Side Risk Ratio Hits Low
At the same time, analyst Ali highlighted another bullish indicator: Bitcoin’s sell-side risk ratio had dropped to 0.086%.
According to Ali, over the past two years, every time this ratio fell below 0.1%, Bitcoin experienced a strong price rebound. For example, in January 2024, Bitcoin surged to a then-all-time high of $73,800 after the sell-side risk ratio dipped below 0.1%.
Similarly, in September 2024, Bitcoin hit a new peak after this metric reached a low level.
The combination of veteran investors accumulating Bitcoin and a sharp decline in the sell-side risk ratio are positive signals for the market. However, a recent analysis from BeInCrypto warns of concerning technical patterns, with a death cross beginning to form.
Additionally, investors remain cautious about potential market volatility in early April. The uncertainty stems from President Trump’s upcoming announcement regarding a major retaliatory tariff.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Marathon Digital Holdings, one of the largest Bitcoin mining companies in the US, made headlines with its announcement of a $2 billion stock offering to increase its Bitcoin holdings.
This strategic move, detailed in recent SEC filings, shows Marathon’s aggressive approach to capitalize on the growing crypto market.
Marathon’s $2 Billion Stock Offering: Key Details
On March 30, 2025, Marathon Digital Holdings announced a $2 billion at-the-market (ATM) stock offering to fund its strategy of acquiring more Bitcoin. The company filed a Form 8-K with the SEC, outlining its plan to raise capital through the sale of shares, with the proceeds primarily aimed at increasing its Bitcoin holdings.
According to the SEC filing (Form 424B5), Marathon intends to use the funds for “general corporate purposes,” which include purchasing additional Bitcoin and supporting operational needs.
Marathon holds 46,376 BTC, making it the second-largest publicly traded company in Bitcoin ownership, behind MicroStrategy. The company’s Bitcoin holdings have grown significantly in recent years, from 13,726 BTC in early 2024 to the current figure.
“We believe we are the second largest holder of bitcoin among publicly traded companies. From time to time, we enter into forward or option contracts and/or lend bitcoin to increase yield on our Bitcoin holdings.” Marathon confirmed
This $2 billion stock offering continues Marathon’s strategy to bolster its balance sheet with Bitcoin, a move that aligns with its long-term vision of leveraging cryptocurrency as a store of value.
Marathon’s strategy mirrors that of MicroStrategy. MicroStrategy’s stock price has soared with Bitcoin’s value, providing a blueprint for companies like Marathon to follow. By increasing its Bitcoin holdings, Marathon aims to position itself as a leader in the crypto mining sector while diversifying its revenue streams beyond traditional mining operations.
Marathon Digital CEO Fred Thiel advises investing small amounts in Bitcoin monthly, citing its consistent long-term growth potential.
The issuance of new shares to raise $2 billion could dilute the ownership of existing shareholders, potentially impacting the company’s stock price (MARA). As of March 31, 2025, MARA stock has experienced volatility, trading at around $12.47 per share, down from a 52-week high of $24, according to data from Yahoo Finance.
Moreover, Marathon’s heavy reliance on Bitcoin exposes it to the cryptocurrency’s price fluctuations. If Bitcoin’s price were to decline significantly, the value of Marathon’s holdings would decrease, potentially straining its financial position.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Ethereum May Have To Undo This Death Cross For Bull’s Return
XRP Bears Lead, But Bulls Protect Key Price Zone
Elon Musk Rules Out The Use Of Dogecoin By The US Government
Market Cap Now Approaching $300 Million
Ethereum’s Price Dips, But Investors Seize The Opportunity To Stack Up More ETH
Trump Family Gets Most WLFI Revenue, Causing Corruption Fears
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
