Bitcoin in, and Bitcoin out: major players are deploying different strategies as BTC consolidates well under $58,400 highs.
After a violent price reversal last week that saw Bitcoin retreat
from all-time highs, traders and analysts are now eyeing major players
and investors to gauge BTC’s next move — and so far the reaction is
decidedly mixed.
Data from on-chain analytics firm Glassnode
indicates that the number of Bitcoin whales — a term for wallets that
hold between 1,000 and 10,000 BTC — has at least temporarily reversed
what was previously a strong uptrend starting in April 2020, a phenomena
Glassnode labeled as a potential “end of whale spawning season.”
The Glassnode blog
did make note that a "sizeable portion" of the decline may be
attributable to custodial wallets restructuring, however. In fact, if
some of the decline is related to custodians moving coins into deep
storage, there’s an outside chance it could be a sign of more BTC moving
into whale ownership, even the actual number of coins in whale
addresses indicates otherwise. As a result, it may be difficult to label
the decline in whale wallets to panic selling during crypto and macro market chop.
Miner outflows, meanwhile, paint a more explicitly bullish picture.
In
a Tweet on Friday, Moskovski Capital CEO Lex Moskovski noted that
Bitcoin miners — a frequent scapegoat for price dumps and boogeyman of
cryptoTwitter — have actually begun accumulating coins as opposed to
selling:
Likewise, there appears to be good news in regards to institutional
accumulation. Ki Young Ju, the CEO of CryptoQuant, noted that the
quantity of BTC in exchange wallets continues to drop — a sign he
believes points to continued institutional demand:
However, some recent research indicates that the institutions hoovering Bitcoin may not have as much an impact on the price as originally thought. What's more, indicators suggest that retail mania has hardly even begun — a sign that the latest pullback may only be temporary, and the next push is where FOMO will really kick in.
At the time of writing Bitcoin is trading at $46,750, down 2% on the day.
source link: https://cointelegraph.com/news/institutions-and-miners-accumulating-through-bitcoin-chop-whales-uncertain
