Bitcoin whales 'buy the dip' leaving retail investors…

  • Bitcoin whales accumulate massive amounts of BTC amid market volatility
  • Miner revenue declined, resulting in significant selling pressure on cryptos

Bitcoin [BTC]The recent price drop of crypto shocked the entire crypto market. However, even though many market bulls have suffered major losses, some addresses have benefited from the recent correction of cryptocurrencies.

Whales bought the dips

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Wallets holding more than 10,000 Bitcoin have been the main beneficiaries of the recent market volatility. These large addresses, believed to be primarily owned by exchange liquidity providers, have seen their holdings increase significantly over the past six weeks. According to some estimates, these addresses accumulated an additional 212,450 BTC, representing a 1.05% increase in their share of the total Bitcoin supply.

The actions of these large wallets can be seen as a sign of confidence in the long-term potential of Bitcoin. This positive sentiment could attract other investors to the market, leading to a further increase in the price. This could also help BTC regain previously achieved levels and reach the $60,000 level if there is no additional selling pressure.

However, this is a double-edged sword. If whales continue to collect large amounts of BTC, it could affect the centralization of BTC. These whale addresses will have a lot of power and can manipulate BTC prices based on their behavior. This could leave retail investors vulnerable, especially when these whales decide to sell their holdings.

Screenshot 2024 07 06 at 4.40.10%E2%80%AFPM

Source: X

Another worrying fact is that retail investors are not showing the same enthusiasm as whale investors.

AMBcrypto’s analysis of Santiment’s data showed that a number of retail addresses in the 0.1 BTC to 1 BTC group showed no interest in buying BTC. If this continues for a long time, it could lead to centralization and leave retail investors at the mercy of whale addresses.

Bitcoin BTC 16.41.29 06 Jul 2024

Source: Santiment

How is the situation of the miners?

Whale interest may temporarily boost Bitcoin's price, but may also increase selling pressure from struggling miners. Daily miners' revenue has fallen significantly in recent days, highlighting their financial stress. This drop in revenue may encourage miners to sell their BTC holdings to cover operating costs, putting downward pressure on the price.

Read about bitcoin [BTC] Price Forecast 2024-25

At press time, BTC was trading at $56,741.70, with its price up by 2.8% over the last 24 hours. However, despite its slight recovery, the crypto’s volume declined by over 37% in the aforementioned period.

If it remains stable for the next one week, it will be difficult for BTC to surpass $60,000 on the charts.

miners revenue 16

Source: Blockchain

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