Key Points
- Bitcoin whales have significantly increased their holdings amidst market volatility.
- Miner revenue drop could increase selling pressure on Bitcoin.
Bitcoin’s recent price drop caught many by surprise. Despite the losses suffered by many, some addresses benefited from the cryptocurrency’s correction.
Whales Seize the Opportunity
Addresses holding more than 10,000 Bitcoin seem to have benefited from the recent market instability. These addresses, largely believed to be owned by exchange liquidity providers, have significantly increased their holdings over the past six weeks. Some estimates suggest these addresses accumulated an additional 212,450 BTC, a 1.05% increase in their share of the total Bitcoin supply.
This behavior can be interpreted as a strong belief in Bitcoin’s long-term potential. It could draw more investors to the market, potentially boosting Bitcoin’s price. However, if whales continue to accumulate large amounts of Bitcoin, it could lead to centralization, giving these addresses significant power over Bitcoin prices. This could leave retail investors vulnerable, especially if these whales decide to sell their holdings.
Miners Struggling Amidst Volatility
While whale interest could temporarily stabilize Bitcoin’s price, struggling miners could further increase selling pressure. Daily miner revenue has dropped significantly, potentially incentivizing miners to sell their Bitcoin holdings to cover operational costs.
At the time of writing, Bitcoin was trading at $56,741.70, up by 2.8% in the last 24 hours. However, the cryptocurrency’s volume fell by over 37% in the same period. If this trend continues, it will be difficult for Bitcoin to break past the $60,000 mark.
