Bitcoin's reduced sensitivity to negative news indicates that most readily available supply has already been sold, suggesting limited downside pressure ahead.

"In December, we expressed that long-term holder sell pressure approaches saturation as the two-year supply overhang clears. The supply available to be spent at a profit is increasingly constrained, and the constraint favours bullish price action by mitigating selling interest at the range highs."

"Andre Dragosch, head of research at Bitwise Europe, said Bitcoin's muted reaction to negative developments has pushed its sensitivity to bad news close to historical lows, which he views as a sign that much of the market's readily available supply has already been sold."