- Bitcoin’s increasing whale accumulation amid market volatility fueled short-term prospects.
- Miners began to sell their holdings as revenues fell.
The volatility of the crypto market has not hindered whale behavior in terms of Bitcoin [BTC] accumulation. According to analyst Maartun, the whales were on a bargain hunt from June 19.
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Whales are turning bullish
This increase in whale accumulation could improve the price of BTC in the short term, as their purchasing power could create upward pressure on the market.
Whales (🟣) buy the orange coin (⚪) goes sideways. I think that’s not too bad 😉
Try it yourself? 👇https://t.co/3tvFr4iYe0 pic.twitter.com/DZIUPMaMM5
— Maartunn (@JA_Maartun) June 18, 2023
However, an increase in whale accumulation also raised concerns about the dependence of the price of BTC on these major investors. If a high percentage of whales own BTC, it could leave small investors vulnerable to sudden selling pressure from these influential players.
Whales’ actions can affect market sentiment and cause significant price swings, potentially leading to increased market volatility.
Another factor that could contribute to BTC’s price increase is stablecoin issuance. Specifically, CryptoQuant analyst Crypto_Lion suggested that stablecoin issuance could lead to future price increases for BTC.
Interestingly, stablecoin issuance has shown a negative correlation with price movements, indicating that stablecoins have the greatest impact during periods of falling prices.
This inverse relationship suggests that stablecoins can act as a stabilizing force during market downturns, attracting investors who seek refuge from market turbulence.
Recent events such as the SEC lawsuits and FOMC panic have led to price drops in cryptocurrencies. However, stablecoins could potentially have a positive impact on the price of BTC in the future, as evidenced by historical data.
Source: CryptoQuant
Bitcoin miners turn away
On the other hand, there are factors that can hinder the growth of the price of BTC. Glassnode’s data indicated that miner outflows have increased. This trend can be attributed to the drop in miner revenues, in part due to lower transaction costs.
If miners cannot make a profit, they may be forced to sell their holdings, adding to the selling pressure of the king coin.
📈 #Bitcoin $BTC Miner Outflow Multiple (7d MA) just hit a 2-year high of 2,188
The previous 2-year high of 2,185 was observed on April 3, 2022
View statistics:https://t.co/rUT3MENeWz pic.twitter.com/Q949GzMKug
— glassnode alerts (@glassnodealerts) June 19, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
At the time of writing, BTC was trading at USD 26,451. The MVRV ratio, which compares BTC’s market value to its realized value, suggested the presence of selling pressure from holders.
In addition, the decreasing difference between long and short term indicated an increase in the number of short-term owners. The increase in short-term holders raised concerns as they were more likely to sell their holdings, potentially impacting BTC’s price.
Source: Sentiment
