Bitfinex: The price of Bitcoin may have bottomed out and started to stabilize

ChainCatcher message, Bitfinex analysts indicate that Bitcoin may have reached a local bottom, and the derivatives market suggests that the price of this digital asset is beginning to stabilize.

Bitfinex analysts state that price volatility has started to decrease, as "the gap between implied volatility and historical volatility has narrowed by nearly 90%, indicating that traders expect Bitcoin's price to remain within a range and tend to stabilize."

Bitfinex analysts added, "While we do see long-term Bitcoin holders continuing to realize substantial profits from their spot holdings, the selling by short-term holders may be nearing exhaustion. We note that the spending output profit ratio (SOPR) for short-term holders is 0.97, indicating that this group is now selling at a loss, which has occurred in the past, and as the selling pressure eases, the price has rebounded."