Bitcoin’s latest price pullback is being driven by tightening U.S. liquidity conditions and tax-related profit-taking among long-term holders, according to new on-chain analysis.
A report published on Nov. 14 by DeepFlow TechFlow cites CryptoQuant analyst @xwinfinance, who noted that several overlapping factors contributed to the downturn:
U.S. liquidity pressure reducing market risk appetite
Profit-taking by long-term Bitcoin holders due to tax considerations
A wave of selling originating from the U.S. market
The analyst said these forces combined to create “the main drivers behind the current market adjustment,” adding that selling from U.S.-based entities aligned with broader macro tightening signals this week.
