- Bitcoin whales have accumulated large amounts of BTC in recent days.
- Holder’s profitability grew and miners’ incomes fell.
Bitcoin [BTC] witnessed a massive increase in whale accumulation in recent days. Despite the price being extremely close to its recent all-time high, many whales have not lost their belief in the king coin.
Bitcoin: big players invest
Whales’ increasing appetite indicated that there were high expectations that BTC would surpass current price levels.
Source:
The story also remained the same for private investors. In recent days, retail investor interest in BTC had grown significantly.
Addresses holding anywhere from 0.01 to 1 BTC had significant growth. Pressure from both whale and retail investors could help BTC break previously claimed levels.
Source: Santiment
However, as the price of BTC increases, the MVRV ratio also increases. AMBCrypto’s analysis of Santiment’s data showed that the MVRV ratio for BTC holders had grown significantly.
This indicated that most holders were profitable at the time of writing. This also increases the incentive for these holders to sell, which could increase the selling pressure on Bitcoin.
In combination with this, the Long/Short difference for Bitcoin had decreased.
This meant that the number of new addresses with BTC had increased and that the percentage of long-term holders who held BTC for a longer period of time had decreased.
Short-term holders are more likely to sell their holdings amid price fluctuations and uncertainty.
Source: Santiment
Miner income is falling
Another factor that could influence the state of BTC is the way the miners are doing it. In recent days, miners’ earnings have fallen from $53.48 million to $48 million.
If this trend continues, miners would have to sell their assets to remain profitable. This could further increase selling pressure on BTC and drive prices down further.
Source: Blockchain.com
Read Bitcoin’s [BTC] Price forecast 2024-25
What could help alleviate the selling pressure around BTC would be interest in BTC ETFs. Since May 31, ETF inflows have been extremely positive.
If interest in BTC continues to rise at this rate and more institutional investors continue to purchase BTC, more upward price movements could occur in the future.
Source: sosowaarde