Recent BTC selling pressure driven by short-term investors, analysis finds

Recent selling pressure in the Bitcoin market has been primarily driven by short-term investors, according to a report from XWIN Research Japan. The analysis highlights that over the past month, as the S&P 500 and Nikkei indices fell by around 3% each, the CBOE Volatility Index (VIX) rose by approximately 18%, indicating growing market anxiety. During the same period, a strengthening U.S. dollar and rising 10-year Treasury yields have pointed to tightening financial conditions. Gold, which typically strengthens amid geopolitical risk, saw its price fall by about 3%. In contrast, Bitcoin demonstrated relative strength, rising by about 6%. However, its correlation with equities remains high at around 0.70, and it shows a negative correlation with the VIX, suggesting its characteristics as a risk asset are still prominent. On-chain data supports this view, with the Market Value to Realized Value (MVRV) ratio at approximately 1.3, a level considered neutral or undervalued with no signs of overheating. The report concludes that accumulation by long-term holders has remained relatively stable, with the recent sell-off being a trend centered on short-term investors.