Bitcoin has experienced strong selling pressure over the last week, which has caused its price to drop from roughly $65,000 earlier in the week to $60,000.

Short-term holders have been blamed for the selling activity. Noteworthy long-term investors did not participate in the current sell-off . The long-term investors’ lack of distribution that was seen in April seems to have decreased.

These long-term holders do not appear to be participating in the recent sell-off, according to on-chain data, which shows that the market may have reached a bottom and that there is now more room for upward movement.

A near-term price floor may have been set, according to the recent volatility in daily net flows into US Bitcoin Exchange Traded Funds (ETFs), which suggests mixed investor opinion.

This viewpoint is supported by the irregular capital inflows and outflows into Bitcoin ETFs, which do not exhibit a significant trend bias.

Despite recent price fluctuations, analysts at Bitfinex Alpha remain confident in the underlying strength of Bitcoin (BTC). They emphasise that Bitcoin’s core functionality, which is its unshakeable security, remains as secure as ever.

This confidence is further strengthened by the network’s recent milestone: processing its one-billionth transaction. This landmark achievement underscores Bitcoin’s growing adoption and its potential as a dependable store of value.

Additionally, Bitcoin continues to serve as a valuable cushion against inflation caused by loose monetary policies. In an economic climate where traditional currencies can lose purchasing power, Bitcoin offers a potentially more stable alternative.

Beyond its security and value proposition, Bitcoin maintains its core advantage: a fast and affordable way to transfer assets. Unlike traditional financial systems, Bitcoin transactions bypass the need for intermediaries like banks or central authorities.

This peer-to-peer approach empowers individuals and businesses to send and receive funds directly and efficiently, reducing transaction costs and increasing overall control.

Regarding the overall state of the economy, market sentiment seems to be taking a cautious approach while it waits for clarification.

Lending has tightened and US wholesale stocks have decreased as a result of the Federal Reserve’s aggressive attitude towards inflation, suggesting that firms are preparing for a possible slowdown in the economy.

This positive reaction to the possibility of improving economic conditions is reflected in the modification of operational plans.

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At the same time, the US House of Representatives approved a resolution against the SEC’s order requiring banks to disclose cryptocurrency holdings held by their customers on their balance sheets.

While some see this as a positive step, President Biden has stated that he is against the resolution, citing the necessity of regulatory measures to guarantee the integrity and stability of the bitcoin market.

Stay updated on developments in the economy and the cryptocurrency market, as these decisions will have a significant impact on businesses and investors alike.