Key Points
- Bitcoin wallets with over 10 BTC have reached a record 16.17 million, indicating strong confidence among major investors.
- Despite recent price fluctuations, large Bitcoin holders continue to accumulate, suggesting optimism about Bitcoin’s long-term value.
Bitcoin has reached a significant milestone with wallets holding more than 10 BTC now accounting for a record 16.17 million BTC. This robust accumulation signifies a high level of confidence among significant Bitcoin investors, despite recent fluctuations in the price.
Data from Santiment reveals that although Bitcoin’s price has recently dropped below $61,000, a 3% decrease in the last 24 hours, large Bitcoin holders persist in their accumulation. This trend indicates optimism about the long-term value of Bitcoin.
Market Sentiment and Stablecoins
The future movement of Bitcoin’s price is largely dependent on stablecoin holders, particularly those using USDT and USDC. According to Santiment, an increase in buying from these holders could potentially elevate Bitcoin’s price.
The Fear and Greed Index has recently transitioned from “greed” to “fear” and is currently hovering around the “neutral” zone. Indicators such as the Relative Strength Index (RSI) and the Market Value to Realized Value (MVRV) ratio suggest a balanced market sentiment and potential buying opportunities.
Bitcoin’s Price Trend
While the accumulation of Bitcoin by whales is on the rise, certain metrics do not favor a significant short-term price surge. Bitcoin has experienced a 15% decrease from its peak in mid-March when it exceeded $73,500.
This decline has raised questions about the sustainability of the current upward trend in Bitcoin’s price. According to CryptoQuant’s analysis, Bitcoin has now entered a risk zone based on the 60-day Realized to Market Capitalization Variance (RCV), suggesting a potential shift in market dynamics.
This metric assesses the two-month change in Bitcoin’s realized capitalization relative to its present market value, providing insights useful for long-term investment strategies like Dollar Cost Averaging (DCA). Despite this, there remains potential for growth, with readings near 0.70 indicating possible higher market valuations for Bitcoin.
Recent developments in Bitcoin mining have significantly influenced the cryptocurrency’s market dynamics. CryptoQuant reports a 7.6% drop in Bitcoin’s hash rate last month, reminiscent of levels last seen post-FTX exchange collapse. This decline follows Bitcoin’s recent halving, reducing miner rewards to 3.125 BTC per block.
Miners are facing reduced revenues from alternative sources amid declining network activity. Initially benefiting from high transaction fees post-halving, earnings have since declined as network activity slowed. This decline in profitability has led to miner capitulation, where miners sell Bitcoin to cover costs, adding to recent downward pressure on Bitcoin’s price.
In addition, the looming Mt. Gox repayment process has drawn significant attention from cryptocurrency investors. Mt. Gox, once the largest Bitcoin exchange, recently transferred about 150,000 BTC to several wallets, sparking rumors of creditors potentially receiving long-awaited repayments. Many analysts predict further selling pressure in the coming months.
