Key Points
- Whales have been accumulating significant amounts of Bitcoin, indicating a potential bullish market trend.
- Despite high interest in Bitcoin ETFs and a surge in open interest, Bitcoin’s price remains steady.
Whale Accumulation of Bitcoin
In recent weeks, data has shown that whales, or large investors, have been accumulating substantial amounts of Bitcoin (BTC). This accumulation has reached a two-month high, suggesting a renewed interest and confidence in the cryptocurrency.
The holdings of these whales have also hit a record peak. This buying spree indicates that these investors perceive the current prices, which are already high, as an attractive entry point for accumulating Bitcoin.
Historically, the buying activity of whales has had a significant influence on the market. While past performance does not guarantee future results, this activity could be a bullish indicator for Bitcoin.
Retail Interest and Bitcoin ETFs
Retail investors have also shown increased interest in Bitcoin. Analysis of data from Santiment revealed that addresses ranging from 0.1 to 10 Bitcoin have shown interest in the cryptocurrency.
In addition, there has been a growing interest in Bitcoin ETFs. Despite a 19-day streak of inflows into US-based spot Bitcoin ETFs, Bitcoin’s price has remained steady. Globally, holdings in spot Bitcoin ETFs have reached significant levels, with approximately 1.3 million Bitcoin, or 5.2% of the circulating supply, as of June 6th.
Despite these inflows, some traders believe that this amount is not enough to significantly move the price until other markets open.
Open Interest in Bitcoin
The Open Interest (OI) in Bitcoin has also seen a surge. High OI is often marked by excessive leverage and speculation, which can precede a price correction. However, this does not seem to be the case currently.
Funding rates, which reflect the willingness of long and short positions to pay each other, have remained slightly positive but are significantly lower compared to the highs seen in March. This suggests that bullish long positions are dominant, with bulls willing to pay bears to maintain their short positions.
At the time of writing, Bitcoin was trading at $71,138.10, having grown by 1.09% in the last 24 hours.
