Concerns regarding a bear market have escalated significantly within the community following Bitcoin’s ongoing difficulties with bearish conditions and the entire cryptocurrency market capitalization plummeting by over 20% in recent months. While volatility might be surging, prominent investors remain optimistic about BTC’s future as they acquire more coins.
Whale Investors Bulk Up On Bitcoin
In the past few weeks, Bitcoin has encountered significant downward trends, with the possibility of falling even lower. Retail investors revealed anxiety and doubt during the market’s declining performance, prompting them to liquidate their assets.
Nevertheless, BTC’s major stakeholders, often referred to as whales, have maintained a positive outlook, rapidly acquiring the leading asset amid these uncertain times. A market analyst known as Caueconomy noted this encouraging trend in a recent snapshot study on the foremost on-chain data and analytics platform, CryptoQuant.
In fact, these whales have been purchasing Bitcoin over the past month, indicating their strong belief in its long-term prospects. During this timeframe, large investors acquired more than 65,000 BTC despite the ongoing price correction.
This encouraging trend reflects elevated buying pressure among these investors, fostering a bullish climate for the leading asset. Although this development doesn’t necessarily indicate immediate effects on price in the short run, it demonstrates engagement from major players, apart from miners and cryptocurrency exchanges.
If this maintains for a few additional weeks, the analyst pointed out the pattern will showcase persistent purchasing power, similar to what transpired from November to December last year. In comparison to short-lived accumulation phases followed by distributions, this sustained activity among major investors is significantly more important.
Meanwhile, the ongoing accumulation by whales may act as a bullish signal, preparing for the next substantial Bitcoin movement. Given the current price fluctuations, it appears whales are capitalizing on BTC’s decline while the digital asset hovers around the $80,000 threshold.
New BTC Investors Are Liquidating Their Holdings
While major investors exhibit a promising trend, a bearish tendency has been observed among recent BTC purchasers. Leading on-chain and financial platform Glassnode indicated that Bitcoin’s unwavering sell pressure is primarily focused on these groups.
This wave of liquidation is exerting downward pressure on Bitcoin’s value, obstructing a sustained breakout in the near term. Furthermore, increased volatility, weak appetite, and liquidity limitations have rendered it challenging to resume substantial accumulation, consequently raising the likelihood of a drop.
So far, Bitcoin’s Short-Term Holder SOPR metric indicates that panic-induced selling has intensified. The index has fallen significantly below the break-even point of 1, suggesting recent buyers‘ anxieties and recognition of their losses.
Featured image from Unsplash, chart from Tradingview.com
Editorial Process for bitcoinist focuses on providing thoroughly researched, precise, and impartial content. We adhere to strict sourcing standards, and every page undergoes careful review by our team of leading technology experts and seasoned editors. This process guarantees the integrity, relevance, and utility of our content for our audience.
