Bitcoin: Whales continue to show faith despite stagnant prices

• Bitcoin whales continued accumulation despite FUD. 
• Traders remain skeptical as put options taken against Bitcoin began to rise.

Bitcoin’s price has been unable to pass the $31,000 -$30,000 threshold over the last month. With high prices and profitable addresses, many skeptics believe that Bitcoin[BTC] may be unable to push past these levels in the near term.

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Whales show interest

However, whales and sharks remained optimistic. Based on Santiment’s data, Bitcoin’s prominent investors and large-scale holders continue to exhibit persistent activity, unaffected by the relatively stagnant price range of $30,000 to $31,000. The accumulation of 71,000 additional BTC, amounting to a value of $2.15 billion, has been observed among 10,000 BTC addresses since 17 June.

?? #Bitcoin‘s sharks and whales aren’t showing any signs of slowing down, even with prices beginning to get “boring” in this $30k to $31k range. Since June 17th, 10 to 10k $BTC addresses have accumulated 71k more coins, equating to $2.15 billion. https://t.co/poBVnszbZY pic.twitter.com/XxYsHWCFRL

— Santiment (@santimentfeed) July 8, 2023

As a result of the accumulation, there has been a significant surge in the quantity of addresses with more than 1 Bitcoin. According to data from glassnode, the number of addresses holding 1+ Coins has recently reached an all-time high of 1,008,517.

Additionally, it was noticed that a considerable portion of addresses remained inactive without engaging in any Bitcoin transfers or displaying signs of activity. This observation was made based on data provided by Glassnode.It revealed that the Amount of Supply Last Active 2y-3y (1d MA) has recently reached an all-time high of 3,032,163.240 BTC.

This indicated many of the addresses accumulating Bitcoin were planning to HODL and store their BTC instead of selling them.

Traders not entirely convinced

Nevertheless, amidst these findings, a shift in traders’ sentiment toward bearishness has become apparent. Recently, there has been a noticeable rise in the put-to-call ratio for Bitcoin. This indicated an increasing preference among traders for options contracts that profit from downward price movements. This shift in sentiment suggested a growing caution and anticipation of potential price declines.

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The increase in bearish sentiment can be attributed, in part, to the expanding Implied Volatility observed in Bitcoin options. This rise indicates a higher degree of market uncertainty and risk perception among traders and investors.

Source: The Block