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Is Bitcoin’s market correction coming? As THIS group sells at a loss…
The recent decline of Bitcoin’s Sharpe Ratio and the STH SOPR below 1 indicate a shift in the market’s momentum, sparking concerns about an impending correction. The sudden surge of short-term holders selling their Bitcoin at a loss adds fuel to this speculation.
For the past few days, Bitcoin’s annualized Sharpe Ratio has been steadily dipping, suggesting that its risk-adjusted returns are no longer providing adequate compensation for investors. Historically, such a decline in the Sharpe Ratio has preceded periods of consolidation or corrective phases. Given the chart patterns and the current market sentiment, a pause in upward movement seems increasingly likely.
Moreover, data from CryptoQuant suggests that short-term holders (STH) are currently experiencing significant losses. The STH SOPR has consistently remained below 1, signifying an unprecedented wave of selling pressure. This is particularly noteworthy given that such dips have historically occurred during times of market distress and capitulation events.
Given the combined signals of both metrics, the Bitcoin community is left grappling with uncertainty regarding its next move. If the recent trends continue, a correction could be in sight, forcing investors to re-evaluate their positions.
Source: https://ambcrypto.com/is-bitcoins-market-correction-coming-as-this-group-sells-at-a-loss
