Copper: Bitcoin may peak in the short term, on-chain indicators show signs of overheating

Digital asset custodian Copper says Bitcoin's latest price action suggests it may have peaked in the short term, with on-chain metrics showing signs of an overheated market. With Bitcoin hovering above the $66,000 mark, Copper Research analysts looked at key metrics, including those reflecting address profitability, to gauge market sentiment ahead of the upcoming U.S. election. Analysis of Bitcoin on-chain data in this week's Copper Opening Bell report shows that 98% of wallet addresses are now in profit based on the price Bitcoin last moved. Historically, when this percentage rises significantly (most recently at 75%), investors are looking to lock in profits, so selling pressure often occurs. According to Copper analysts, this could be a sign that Bitcoin is approaching a short-term peak. Copper analysts said: "When there are large fluctuations, patterns emerge, and when we see a significant proportion of addresses turn profitable, it usually leads to selling pressure, which may indicate that the market is experiencing a temporary top before the US election." The analyst added: "The market has responded to ETF inflows in the last seven days, with prices breaking the $69,000 mark for the first time since July. However, something seems to be wrong in terms of growth. At the beginning of the year, the daily growth of ETFs was large, but this phenomenon has not been seen in the market recently." (The Block)