Bitcoin has experienced increased investor interest across the previous years. Fueled by interest from institutional investors and large market players, the coin has recently surged to unprecedented levels. However, top crypto analysts have expressed that the “digital gold” is coming to the end of its bull run and the distribution phase is set to kick in.
Bitcoin Set to Enter the Distribution Phase
According to crypto expert Ali Martinez, BTC is nearing the Distribution phase. In a post on Jan. 26, 2025, famous crypto analyst Ali Martinez wrote that “the Wyckoff Method, [shows that] Bitcoin could be approaching its final leg up before entering the Distribution Phase.”
Distribution is a market phase where whales and large institutional investors begin to sell their Bitcoin holdings. The phase usually follows a period of high prices and means that large holders have begun selling for profit taking. On the other hand, retail or small investors buy BTC at the elevated price. This results in BTC’s upward momentum dropping as the market slows down.
Besides Crypto Quant CEO and Founder, Ki Young Ju, backed Martinez’s BTC analysis. Ki Young wrote, “we’re in the late stage of the Bitcoin bull market.” He further added, “I’d say we’re in the early distribution phase, as new retail investors are entering.” If whales and institutional investors continue to take profit at the current price levels, BTC’s price might begin to decline or stagnate.
BTC Long Term Holders’ Supply Declines by 75,000 BTC
Bitcoin’s long-term holder (LTH) supply has declined significantly over the past week. In another post earlier today, Ali Martinez expressed that on-chain data on Glassnode shows that the total Bitcoin supply held by long-term holders has declined by over 75,000 $BTC over the past week.
This major drop indicates that investors holding Bitcoin in the long-term are currently changing their investment strategies. Decline in LTH supply is set to affect the price of Bitcoin as it signifies anticipation of lower prices in the near future.
The decline in long-term holders’ supply also shows a shift in market sentiment. These investors hold for longer periods and if they start selling, then it is clear that they believe Bitcoin prices reached their peak temporarily.
Bitcoin’s Current Price Performance
Bitcoin is currently trading at $104,793 price which is a 0.3% surge in the day. The current price is also just below the all-time high price of $109,026.02 achieved last week.
According to data on Coingecko, BTC’s trading volume over the last 24 hours stands at $18.91 billion. Additionally, its market capitalization stands at $2.07 trillion with a total supply at 19.81 million.
The chart above also shows that Bitcoin is currently trading sideways around the $104K mark. Any sharp price movement outside the current BTC price range could mean a breakout or further correction.
Despite indicating that BTC is in the final stage of the recent bull cycle, Ki Young Ju still believes that “there’s still room for growth” in regards to the price. The CryptoQuant CEO owes the optimism to Donald Trump’s impact which he says it “could extend this bull run for another couple of quarters.” If Donald Trump keeps his promise to create a US Bitcoin Reserve in the near future, we might see Bitcoin coming out of the Distribution phase.
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