As a seasoned crypto investor with a keen interest in Bitcoin (BTC), I find the recent market fluctuations intriguing. The attempt by BTC to break above $70,000 following lower-than-expected CPI numbers and cooling inflation was a promising sign for bulls. However, the lack of sustainability in this move is a cause for concern.
Bitcoin‘s price made a push to surpass $70,000 following unexpectedly low CPI figures and indications of easing inflation. However, this surge was short-lived as Bitcoin retreated to around $67,400 by press time. A positive sign is that substantial amounts of Bitcoin have been accumulated by large investors, or “whales,” throughout the recent price dips over the past week.
Bitcoin Whales on Strong Accumulation
According to the latest figures from CryptoQuant, approximately 20,000 Bitcoins have been transferred into the cryptocurrency reserves of prominent investors during this week’s market downturn. This implies that these investors have taken advantage of every price decline to expand their Bitcoin holdings further.
Making use of Bitcoin’s market instability, large-scale investors (Bitcoin whales) have capitalized on price dips to expand their hoards, according to CoinGape’s report. In contrast, Bitcoin miners have been offloading their holdings due to reduced profits post-halving, putting additional pressure on the Bitcoin price by increasing supply in the market.
As a researcher, I’ve observed an uptick in investments into US Bitcoin Exchange-Traded Funds (ETFs) over the previous three weeks. Following a brief period of net withdrawals earlier this week, the inflows have picked up steam once more.
As an analyst, I’ve observed some noteworthy developments in the Bitcoin Exchange-Traded Fund (ETF) market on June 12, 2023. Specifically, spot Bitcoin ETFs experienced a net inflow amounting to $101 million. Notably, the outflows from Grayscale GBTC have ceased, making way for Fidelity’s FBTC ETF to take the lead with a daily inflow of approximately $50.6 million.
BTC Exchange Supply Drops to 3 Months Low
I’ve analyzed the latest data from Santiment, a reputable on-chain data provider, and found that the total Bitcoin supply held on exchanges has decreased to approximately 942,000 Bitcoins as of now. This is the lowest figure since December 2021, marking a significant shift in market dynamics over the past few years.
With fewer Bitcoins in circulation on exchanges, the likelihood of a major price decline is decreased. This is because there is less Bitcoin available for immediate sale. Consequently, the restricted Bitcoin supply on the exchanges implies a more predictable and stable future for the wider cryptocurrency market.
According to CoinGape’s report, there has been a significant increase of 55% in short-term investor enthusiasm for Bitcoin since the introduction of the spot Bitcoin Exchange-Traded Funds (ETFs) this year.
At this moment, Bitcoin’s price is holding steady around $67,500. If it falls below $67,000, though, that could signal a downturn leading to potential corrections at $65,000 and then $62,500.
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2024-06-13 07:20