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Last week marked a notable shift in the dynamics of the crypto market. Bitcoin lost over 6% of its value, and U.S. spot Bitcoin exchange-traded funds broke their 20-day inflow streak with outflows running into hundreds of millions of dollars., bitcoin’s plunge was mainly caused by selling from long-term holders, whales, and miners on exchanges and via over-the-counter transactions.
The Hodler Net Position Change metric, which tracks long-term bitcoin investors’ monthly position changes, indicates how intense the selling pressure is. When long-term holders are selling, this metric turns negative, and when they are buying, it turns positive. The indicator has been consistently negative for the past nine days.
Besides long-term holders, whales have also been busy. The ratio of the top ten inflows into exchanges as a proportion of total inflows has increased, indicating that a large quantity of BTC is being deposited on trading platforms via whale wallets, most likely in preparation for sale.is on a smaller scale than previously observed in April, Bitfinex analysts said it highlights the influence of long-term holders on BTC market dynamics.
“The peak in BTC around March 2024 corresponds with a significant decline in miner reserves, suggesting that miners were selling off their reserves to capitalize on high prices. This was common at that point of time as miners were also selling reserves to prepare for the Bitcoin halving to realize investment needed to upgrade machinery and operations,” Bitfinex stated.
Analysts assume that miners are still struggling to maintain operational efficiency as their block rewards have been reduced. They areBest AI Crypto Coins in 2024: Top 9 Projects to WatchOne Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions.
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