After the huge correction that the bitcoin price experienced from a record high last week, investors and analysts expect big players and investors to steer BTC’s next step. The reactions so far have been different.
Data from on-chain analytics source Glassnode reveals that the number of Bitcoin whales (wallets with between 1,000-10,000 BTC) reverses the strong uptrend that started in April 2020, at least temporarily.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
Glassnode’s blog post suggested that the reduction in whales may be partially related to the restructuring of storage wallets. If the decline is related to custodian transferring cryptocurrencies to cold storage, there is a possibility that more BTC is being taken over by whales, although the number of cryptocurrencies in whale addresses indicates otherwise. Therefore, it becomes difficult to relate the decline in whale wallets to panic sales.
Miner sales, on the other hand, show a much more positive picture.
Moskovski Capital CEO Lex Moskovski said in a post on Friday that Bitcoin miners are starting to accumulate BTC as opposed to selling.
Miners have stopped selling and started accumulating #Bitcoin
Yesterday was the first day since Dec, 27 when Miners Position change turned positive.
Miners were selling their bitcoins for two months.
– Lex Moskovski (@mskvsk) February 27, 2021
The news is also positive on the corporate investor front. CryptoQuant CEO Ki Young Ju said that the amount of BTC in exchange wallets continues to decline. The CEO thinks this is an indicator of corporate demand:
Another significant Coinbase outflows at 48k. US institutional investors are still buying $ BTC.
I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand. https://t.co/wzwkwMhJWx pic.twitter.com/1uEEF8SX5Q
– Ki Young Ju 주기영 (@ki_young_ju) February 26, 2021
Bitcoin, which has gained close to 5 percent in the last 24 hours, is being traded at $ 47,353 as of the time of translation broadcast.