- Bitcoin whales accumulated significant amounts of BTC amid market volatility
- Miner revenues dropped, resulting in significant selling pressure on the crypto
Bitcoin [BTC]’s latest price crash shook the crypto markets as a whole. While many market bulls suffered huge losses, some addresses benefited from the cryptocurrency’s recent correction.
Whales buy the dip
Wallets holding more than 10,000 Bitcoin have benefited the most from recent market volatility. These large addresses, believed to be primarily owned by exchange liquidity providers, have significantly increased their holdings over the past six weeks. By some estimates, these addresses have accumulated an additional 212,450 BTC, representing a 1.05% increase in their share of the total Bitcoin supply.
The actions of these major wallets can be seen as a sign of confidence in Bitcoin’s long-term potential. This positive sentiment can attract other investors to the market, further driving the price higher. This can also help BTC regain previously reached levels and may help it reach the $60,000 level, if there is no additional selling pressure.
However, this is a double-edged sword. If whales continue to accumulate large amounts of BTC, it could have implications for BTC centralization. These whale addresses have a lot of power and can manipulate BTC prices depending on their behavior. This could leave retail investors vulnerable, especially if these whales decide to sell their holdings.
Source: X
Another worrying factor is the fact that retail investors do not show the same enthusiasm as whales.
AMBCrypto’s analysis of Santiment’s data revealed that the number of retail addresses in the 0.1 BTC to 1 BTC cohort showed no interest in purchasing BTC. If sustained over the long term, this could fuel centralization and leave retail investors at the mercy of whale addresses.
Source: Santiment
How are the miners doing?
While whale interest may temporarily boost Bitcoin’s price, struggling miners could exacerbate the selling pressure. Miners’ daily revenue has dropped significantly in recent days, highlighting their financial strain. This drop in revenue could prompt miners to sell their BTC holdings to cover operational costs, which could put downward pressure on the price.
Read Bitcoin’s [BTC] Price Prediction 2024-25
At the time of going to press, BTC was trading at $56,741.70, with a price increase of 2.8% over the past 24 hours. However, despite the tepid recovery, the crypto’s volume dropped by over 37% in the aforementioned period.
If this continues over the coming week, it will be difficult for BTC to break the $60,000 barrier on the charts.
Source: Blockchain