After experiencing significant selling pressure over the weekend, Bitcoin is now back above the $40,000 mark. As of press time, BTC is trading 4% higher at $40,536 with a market cap of $770 billion.
As the Bitcoin price fell below $39,000 late Sunday, it appears that whales began to buy dips. Ai Martinez reports, citing data from the on-chain platform Santiment, “Bitcoin whales took advantage of the recent downswing to buy 40,000 $BTC, worth $1.6 billion! Data from @santimentfeed shows that address with 10,000 to 100,000 BTC increased their holdings by nearly 2%, while prices dropped from $39,900 to $38,200.”
Short-term BTC holders, on the other hand, appear to have lost patience during the recent price consolidation. According to Into the Block data, “Bitcoin short-term holders continue to decrease their positions. These traders – addresses holding <1 month, tend to follow the price action, and in many cases sell at a loss. The balance held by traders is at the lowest value since Jan 18, as they now hold 1.49m BTC.”
What is the Future of Bitcoin?
Bitcoin’s price has been fluctuating between $35,000 and $45,000. As a result, this could turn out to be just another price increase, and nothing definitive can be said at this time.
However, we have some exciting developments in store for Bitcoin investors this week. On April 27, Australia will receive its first spot-Bitcoin ETF, which will be listed on the CBOE equities trading exchange. According to market estimates, this could result in net inflows of $1 billion or more.
Another positive catalyst for Bitcoin could be the rapid increase in illiquid BTC supply. Analysts at Blockforce Capital report that a “massive” number of BTC coins have been moving off exchanges, citing data from Glassnode.
This supply is being taken “offline” and placed in cold storage. The analysts wrote in a note, “We have only seen this level of outflow from exchanges four previous times since the start of 2018. Three of those instances correlated with a sharp upward movement in price not too long after.”
To read our latest blog on “Bitcoin prices have risen and Dogecoin has soared” click here.
