Bitcoin Whales and Sharks Accumulate Amid Price Dip
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According to blockchain analytics platform Santiment, the number of Bitcoin whale and shark wallets is on the rise. Throughout July, there has been a net increase of 261 wallets holding at least 10 BTC. This trend suggests strong confidence in Bitcoin’s long-term potential, as these large holders continue to accumulate despite the price drop.
Small Traders Sell Off Amid Market Uncertainty
Conversely, small traders have been selling off their Bitcoin during this dip period. This sell-off by smaller investors could be driven by fear and uncertainty in the market. However, the accumulation by whales and sharks points to a differing sentiment among experienced and larger investors.
Bitcoin’s Price Trend and Market Metrics
While large Bitcoin holders continue to accumulate, certain metrics suggest caution for a short-term price surge. Recently, Bitcoin experienced a 15% drop from its mid-March peak of over $73,500. This decline has sparked concerns about the sustainability of Bitcoin’s upward trend.
According to CryptoQuant, Bitcoin has now entered a risk zone based on the 60-day Realized Market Capitalization Variance (RCV). This metric tracks the two-month change in Bitcoin’s realized capitalization relative to its current market value, indicating potential shifts in market dynamics. Despite the current risk zone, readings near 0.70 on the RCV suggest that higher market valuations for Bitcoin could be on the horizon.
Long-Term Bullish Outlook
The increase in whale and shark wallets should provide comfort to traders concerned about the current market conditions. The actions of these large holders suggest a belief in a long-term bullish future for Bitcoin, despite short-term volatility. This accumulation by significant investors underscores a strong confidence in the cryptocurrency’s potential for growth.