Bitcoin is in Distribution Phase Facing Temporary Correction: Analyst

Axel Adler Jr., a notable crypto expert, recently underlined Bitcoin’s current period of decline as a short-term distribution event rather than a danger to the wider bull market. Drawing similarities to historical trends, Adler Jr. tweeted today that the present outflow is around -140K BTC reflecting profit-taking and localized pressures. However, it is substantially less than earlier crisis-driven outflows (-268K BTC in 2021 and -437K BTC) during the 2020 epidemic.

Bitcoin is Showing Reaction to Macroeconomic Factors

Bitcoin’s considered demand, defined by the 30-day moving average of fresh supply against inactive assets, plunged to -140 in March 2025, which is the year’s lowest. This represents the first persistent negative demand trend since September 2024, caused by diminished buyer activity and macroeconomic uncertainties. However, Adler Jr. adds that similar falls have traditionally preceded brief corrections. Despite localized pressure, this decline in $BTC is not a threat to the wider bull market. This downturn is just a short-term profit-taking event following the new ATH i.e., $109K.

The Federal Reserve Maintains a Tight Monetary Policy

The Federal Reserve’s restricting monetary policies and persistently rising inflation have fostered risk avoidance, putting pressure on digital assets like Bitcoin. Stocks have also witnessed huge drawdown and BTC too felt the tremors.

To sum up, Axel Adler Jr. has rightfully pointed out that the current steep of BTC to -140K$ is not a threat for the wider bull market. $BTC has suffered losses of -268K in 2021 and -437K BTC during the 2020 epidemic and still regained its momentum. Thus, this year’s loss is still less and would be recovered easily.