- Bitcoin recovered, causing whales to accumulate BTC.
- Miners saw selling pressure as traders turned bearish.
In recent days, the cryptocurrency market has experienced a remarkable resurgence, led by that of Bitcoin [BTC] recovery and successful recovery of the $28.2k price level.
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Whales show interest
Source: Glassnode
The price spike was preceded by a surge in Bitcoin activity, which took place over the weekend. However, other factors such as whale behavior also affected the price of BTC. According to Glassnode’s data, the accumulation of BTC by whales has grown steadily over the past few months.
In terms of distribution, an overwhelming majority of BTC is currently held by addresses with 10-10,000 BTC. Increased accumulation by whales could help improve the price of BTC in the future. However, it would make retail investors much more vulnerable to whale behavior, which in turn could cause large price swings.
Despite the high concentration of BTC held by whales, private investors have shown the same interest in collecting BTC as the whales.
Source: Sentiment
However, miners may not be showing the same enthusiasm for BTC, despite Bitcoin’s rising prices. According to BTC.com, miner earnings fell from $41.74 million to $29.01 million last month. Coupled with that, Bitcoin mining difficulty has continued to increase significantly over the same period.
With greater difficulty, miners must invest more computing power and resources to mine BTC, which can lead to higher electricity costs and reduced mining profitability.
High difficulty levels make it more challenging for individual miners to compete and receive block rewards, potentially forcing smaller miners out of the network and consolidating mining power in the hands of larger and more resourceful operations.
Miners’ declining profits could force them to sell their BTC to stay afloat. The increasing selling pressure on these miners may negatively affect the price of BTC in the future.
Source: BTC.com
Read Bitcoin [BTC] Price forecast 2023-2024
Bitcoin traders turn bearish
Despite the volatility BTC has experienced over the past month, open interest in Bitcoin options has continued to soar. Moreover, bearish sentiment around BTC also spiked. This was demonstrated by Bitcoin’s increasing put-to-call ratio.
According to data from TheBlock, the put-to-call ratio for BTC has risen from 0.42 to 0.48 in recent days.
Source: Coinglass.com
