Bitcoin: Profit takers do their thing, but BTC persists
- Bitcoin remained stable even though sellers made profits.
- Whales made highly optimistic bets as they hoped for BTC to surge further.
Bitcoin [BTC] has spearheaded optimism in the crypto space. While its price rallied, many traders began to question whether this momentum could be sustained.
No slowing down
Around the 2nd of November, there were approximately $1 billion in deposits on Bitfinex, plus some people sold to take profits. This was a good sign, because Bitcoin’s price was still rising at press time.
Another interesting thing was that the total amount of Bitcoin on exchanges remained the same all year, at around 2.3 million BTC.
However, the Open Interest, which is how much people have bet on Bitcoin’s price, went down for the year. Bitcoin’s price is still going up, propelled by people making bets in the Futures market in 2021 and after problems with FTX in 2022.
However, there were fears that investors’ profit-taking activities could create volatility for Bitcoin, causing fluctuations in its value. But regardless, people’s continued interest in the king coin indicated its robust nature.
BTC’s decreasing Open Interest suggested fewer speculative bets on Bitcoin’s price. This indicated a shift in how Bitcoin’s price is determined, moving away from speculators influencing it.
Overall, these factors could lead to more price stability for Bitcoin in the future.
Since Nov 2, give or take 5%, we've seen roughly $1B of inflows (@bitfinex) plus recent profit taking.
Quite incredible that #Bitcoin continues to grind higher and stomach this.
What else is interesting, the exchange balance in aggregate is roughly flat for the year, 2.3M… pic.twitter.com/j2QqpmaJxJ
— James V. Straten (@jimmyvs24) November 11, 2023
Whales were getting hopeful around BTC as well. The market is heating up — and some big accounts are taking larger and larger risks.
Is your portfolio green? Check out the BTC Profit Calculator
In addition, Arkham Intelligence’s data showed that the crypto market is getting more active, and some major players were taking bigger risks. A big account, known as Kwenta Whale 0x160, had open long positions worth more than $35 million in GMX and Kwenta.
These moves indicated a high level of confidence and a willingness to take on significant risks in the crypto market.
You can use Arkham to track large deposits to GMX and Kwenta Smart Accounts – this will tell you when large traders are about to make sizable moves.
— Arkham (@ArkhamIntel) November 11, 2023