Bitcoin [BTC] whales are on the move again, will this kickstart another rally?
- Whales began to show interest in BTC, despite selling off their holdings earlier this month.
- Miners’ selling pressure could be detrimental to BTC’s price.
Whales are known to influence Bitcoins [BTC] prices time and time again. It was observed that over the past few months, as BTC prices rose, both whales and retail investors shared a bullish sentiment around the coin.
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Whales swallow more BTC
As BTC prices hit $30,000, whales began exiting their positions, leaving retail investors in the dust. However, it was recently observed that whales have started showing interest in accumulating BTC again.
According to the data provided by Santiment, during the weak price decline and fluctuating prices, the addresses holding 100 to 10,000 BTC added a total of 64,094 coins to their stack since April 11.
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 indicates that these large owners have a bullish attitude towards the cryptocurrency. This could have a positive impact on Bitcoin’s prices as it indicates that investors with significant capital are confident in the potential for growth.
While whales dominating the BTC supply can positively affect BTC prices in the short term, it can make retail investors more vulnerable.
According to glasssnode’s data, the number of addresses with 0.01 coins has reached a record high. This suggested that retail investors continued to show faith in BTC.
📈 #Bitcoin $BTC Number of addresses with 0.01+ coins just hit an ATH of 11,812,326
See calculation: pic.twitter.com/X0JupyXNYv
— glassnode alerts (@glassnodealerts) 28 April 2023
Bears lurk in the shadows
The interest of whales and retail investors in BTC may lead to a temporary increase in prices. However, the selling pressure on the miners may hinder the growth.
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It should be noted that mining difficulty has now reached a record 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 forced to sell their assets to make money, it could have a detrimental effect on the market value of Bitcoin.