Bitcoin crosses $64K, but whales remain cautious – Here’s why

  • Bitcoin whales started to move their dormant BTC.
  • Retail investors showed interest, most holders remained unprofitable.

Bitcoin [BTC] has been trading at the $64,000 level for quite some time and has stagnated at that position. However, things could soon change for BTC as whales have been losing interest in BTC.

Whales move their holdings

According to Lookonchain’s data, a wallet that remained inactive for 10.3 years recently initiated a transaction, transferring all 687.33 BTC equivalent to $43.94 million.

The recipient of this transaction had initially received 687.33 BTC which was valued at $630,000 on the 12th of January 2014, when the price per BTC was $917.

This move may cause FUD in the crypto markets and cause a price correction. Despite this whale’s behavior, a large part of the whale cohort remained neutral around BTC.

Santiment’s data revealed that addresses holding anywhere between 1-10,000 coins were not seen to be accumulating or selling their holdings.

However, surprisingly, retail investors were seen to be accumulating en masse.

Even though retail accumulation may not help BTC see significant surges in price, it could help improve the sentiment around the king coin, which could lead to positive price movement going forward.

Source: Santiment

However, if more whales begin to sell their holdings and indulge in profit-taking, the retail investors may suffer and could be impacted negatively.

What’s next for BTC?

At press time, BTC was trading at $64,293.03 and its price had grown by 0.70% in the last 24 hours. The volume at which BTC was trading at had grown by 27.12% as well.

If the positive sentiment persists, the price of BTC could claim the $65,000 level and start its journey towards $70,000.

However, there were some problems that BTC could face on its way to the top. One of them would be the declining velocity being seen for BTC.

Despite the surge in volume, the velocity around BTC in the last few days had fallen, implying that the frequency with which BTC was being traded at had declined.

Even though there are some challenges that BTC is facing, the selling pressure on most of the holders is relatively low.

Read Bitcoin’s [BTC] Price Prediction 2024-25

One of the main reasons for the same would be the declining MVRV ratio for BTC, which indicated that most holders were in losses at the time of writing.

This meant that BTC could continue to rise to a certain level till holders turn profitable. After this, profit taking may take place and a slight correction may occur.

Bitcoin BTC 17.38.23 06 May 2024

Source: Santiment

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