As Bitcoin’s price recovers from a recent dip to just above the $60,000 mark,recently conducted analysis suggests that short-term BTC holders have been “gradually exiting” the market, which leads to reduce selling pressure.
According to analysis conducted by CryptoQuant analyst IT Tech, the supply of Bitcoin being held by short-term holders has decline “especially after major sell-offs,” which reduces selling pressure and creates “opportunities for accumulation and may signal a price floor.”
The analyst noted that as short-term holders sell their coins, these often end up in “stronger hands, potentially stabilizing the market.”
As reported, Bitcoin has been seeing new whales ‘fiercely’ add BTC to their holdings amid an accumulation trend that the market “has never seen,” as whales that have entered the market during the latest bull run keep looking for profit.
According to the CEO of popular cryptocurrency analytics firm CryptoQuant, new whale wallets, which are primarily custodial wallets and those associated with the spot Bitcoin exchange-traded funds (ETFs) that started trading in the United States earlier this year, have “not generated sufficient profit” to start realizing their gains.
Per Ki Young Ju, the current volatility the cryptocurrency space is seeing is “just a game in the futures market.” That volatility saw the price of the flagship cryptocurrency Bitcoin top $66,000 late last month, before plunging to around $60,000 in the beginning of October. It has since recovered to now trade above $61,000.
CryptoQuant’s CEO added that real whales “move the market through spot trading and OTC [over-the-counter] markets,” and that while old whales “haven’t seen particularly high returns,” the whales that recently entered the market “barely made any profits.”
He also added that the recent whale accumulation data “shows little correlation with ETFs,” suggesting that the whales entering the market aren’t just those buying through spot Bitcoin ETFs.
Featured image via Unsplash.
