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- BTC outflows continued to rise due to GBTC’s behavior.
- MVRV ratios remained high, indicating a large number of profitable addresses.
Bitcoin [BTC] It was observed to be stagnant at the $51,000 price level for quite some time. One of the reasons for the lack of movement in the price of BTC was due to the outflow from Grayscale Bitcoin Trust (GBTC).
Rising outflow
GBTC outflows have been a hindrance to BTC growth for some time now. A recent report revealed an outflow of $199 million from GBTC and an inflow of $111 million from The Nine.
This resulted in total daily net outflows of $88 million.
Additionally, there was speculation that GBTC might sell some of the Genesis/Gemini shares.
The reduced institutional interest, especially highlighted by the significant $199 million outflow from GBTC, has the potential to cast a shadow on Bitcoin prices.
Institutions, which are often considered influential market participants, play a crucial role in shaping overall market sentiment.
When a major investment vehicle like GBTC experiences significant outflows, it suggests that institutional investors may be reconsidering their exposure to Bitcoin.
Institutional interest is generally associated with confidence in the market, and a notable decline can be interpreted as a signal of caution or even a shift to a more bearish outlook.
Institutions typically conduct thorough analyzes and risk assessments before making investment decisions.
If their reduced interest is caused by concerns about future performance or inherent risks associated with Bitcoin, it could trigger a broader shift in sentiment among market participants.
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Not all major investors
However, not all hope is lost as some whales showed interest in BTC.
Remarkable, the largest whale cohort, with between 1,000 and 100,000 BTC, is accumulating. This accumulation pattern, a hallmark of bull markets, indicated a positive outlook among large investors.
Their buying activity started around $29,000 and increased as the price exceeded $46,000.
Read Bitcoin’s [BTC] Price forecast 2024-2025
At the time of writing, BTC was trading at $51,847.69 and the price was down 0.26% over the past 24 hours. BTC’s MVRV ratio had remained high during this period.
This meant that despite recent price movements, most holders were profitable at the time of writing.
Source: Santiment