Despite recent market conditions, large-scale BTC holders, known as ‘whales,’ have shown confidence in Bitcoin. According to crypto analyst Ali, these major investors have taken advantage of the price correction to increase their Bitcoin portfolios. Ali’s analysis reveals that 67 new entities now hold more than 1,000 BTC, representing a 4.50% increase in just two weeks.
Bitcoin Resilience And Recovery: Factors At Play
Bitcoin has demonstrated resilience and is charting a course of recovery. The cryptocurrency has seen a 10% surge in value over the past week, with a notable 3.2% increase in the last 24 hours alone, bringing its trading price to around $43,412.
One contributing factor to Bitcoin’s recovery is the diminishing impact of Grayscale’s sell-off. BlackRock’s Spot Bitcoin ETF, IBIT, has nearly matched Grayscale’s GBTC in terms of trading volume, indicating potential offsetting of outflows from GBTC.
Reduced Selling Pressure And Market Optimism
Grayscale’s conversion of GBTC to a spot Bitcoin ETF had caused selling pressure and led to sell-offs from GBTC investors. However, recent trends show a cooling off among GBTC investors as BitMEX Research highlights the lowest daily outflow since launch. This reduction in selling pressure contributes to Bitcoin’s price recovery.
Glassnode co-founders Jan Happel and Yann Allemann note that Bitcoin’s rise above $42,200 has created substantial liquidity for long positions. If Bitcoin continues its upward trajectory, it could trigger further liquidations in short positions and potentially lead to a ‘short squeeze,’ catalyzing further growth in value.
Hot Take: Whales Demonstrate Confidence in Bitcoin Despite Market Conditions
Despite recent price volatility, major Bitcoin holders, or ‘whales,’ have shown their confidence in the flagship cryptocurrency. These whales have taken advantage of the recent price correction to increase their Bitcoin portfolios. With 67 new entities now holding more than 1,000 BTC, representing a 4.50% increase in just two weeks, it suggests a bullish outlook from these major players. This goes against the prevailing market sentiment and indicates resilience in Bitcoin’s value. As Bitcoin continues its recovery and various factors contribute to its upward trajectory, it could potentially trigger further growth and liquidations in short positions, leading to a ‘short squeeze’ scenario.
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