- Whales started showing interest in BTC despite selling their holdings earlier this month.
- Selling pressure from miners can be detrimental to the price of BTC.
Whales are known to influence Bitcoins [BTC] praise again and again. It was observed that in recent months, while BTC prices have been on the rise, whales and retail investors alike have shared an optimistic sentiment around the coin.
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Whales swallow more BTC
As the price of BTC reached $30,000, whales began to exit their positions, leaving small investors in the dust. However, whales were recently observed to be showing interest in collecting BTC again.
According to data from Santiment, the addresses with 100 to 10,000 BTC have added a total of 64,094 coins to their stack since April 11 during the slight dip and price swings.
Source: Sentiment
Due to the great interest of whales in BTC, the BTC supply per whale value reached a stable number 5,350 BTC / Whale.
When there is a high accumulation of Bitcoin by whales, it suggests that these large holders have an optimistic feeling towards the cryptocurrency. This can have a positive effect on Bitcoin prices, as it indicates that investors with significant capital are confident in its growth potential.
While whales dominating the BTC supply can have a positive impact on BTC prices in the short term, it can make retail investors more vulnerable.
According to glasssnode data, the number of addresses with 0.01 coins has reached an all-time high. This suggested that retail investors continued to show confidence in BTC.
#Bitcoin $BTC Number of addresses with 0.01+ coins just reached an ATH of 11,812,326
View statistics:https://t.co/oyguxpb7S6 pic.twitter.com/X0JupyXNYv
— glassnode alerts (@glassnodealerts) April 28, 2023
Bears lurk in the shadows
The interest of whales and private investors in BTC may temporarily cause a price increase. However, selling pressure on miners could hamper growth.
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It should be noted that mining problems have now reached an all-time high of 209 zetta hashes. Mining difficulty refers to the computational power required to mine a block. It increases over time, making it more difficult for miners to validate transactions and earn rewards.
This can lead to higher energy and equipment costs, lower profitability and fewer miners on the network. In the event that miners are forced to sell their assets in order to make a profit, this could have a detrimental effect on Bitcoin’s market value.
Source: glasnode
