Bitcoin [BTC] whales are on the move again, will this kickstart a new rally?
- Whales started showing interest in BTC, despite selling off their holdings earlier this month.
- Miner selling pressure could be detrimental to BTC’s price.
Whales are known to influence Bitcoin’s [BTC] prices time and again. It was observed that over the last few months, while BTC prices were rallying, both whales and retail investors shared a bullish sentiment around the coin.
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Whales swallow more BTC
As BTC prices reached $30,000, whales started exiting their positions, leaving retail investors in the dust. However, it was recently observed that whales have started to show interest in accumulating BTC yet again.
As per the data provided by Santiment, during the slight dip and wavering of prices, the addresses that held 100 to 10,000 BTC added a total of 64,094 coins to their pile since 11 April.
Due to the high interest in BTC from whales, the BTC supply per whale value reached a stable number of 5,350 BTC / Whale.
When there is a high accumulation of Bitcoin by whales, it suggests that these large holders have a bullish sentiment toward the cryptocurrency. This can have a positive impact on Bitcoin’s prices as it indicates that investors with significant capital are confident in its potential for growth.
Though whales dominating the BTC supply may impact BTC prices positively in the short term, it could make retail investors more vulnerable.
According to glasssnode’s data, the number of addresses holding 0.01 coins has reached an all-time high. This suggested that retail investors continued to show faith in BTC.
📈 #Bitcoin $BTC Number of Addresses Holding 0.01+ Coins just reached an ATH of 11,812,326
View metric:https://t.co/oyguxpb7S6 pic.twitter.com/X0JupyXNYv
— glassnode alerts (@glassnodealerts) April 28, 2023
Bears lurk in the shadows
The interest from whales and retail investors in BTC could cause a spike in prices temporarily. However, the selling pressure on miners could hinder its growth.
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It is to be noted that mining difficulty has now reached an all-time high of 209 zettahashes. Mining difficulty refers to the computational effort needed to mine a block. It increases over time, making it harder for miners to validate transactions and earn rewards.
This can lead to higher energy and equipment costs, lower profitability, and fewer miners on the network. In the event that miners are compelled to sell their assets to make profits, it may have a detrimental effect on the market value of Bitcoin.