Bitcoin is back above $40,000 after seeing severe selling pressure over the weekend. Bitcoin is currently trading 4% higher at a price of $40,536 with a market cap of $770 billion as of press time.
As the BTC price fell below $39,000 late Sunday, whales appeared to be active in buying the dips. Citing data from on-chain platform Santiment, Ai Martinez reports:
Bitcoin whales took advantage of the recent downswing to buy 40,000 $BTC, worth $1.6 billion! Data from @santimentfeed shows that addresses with 10,000 to 100,000 BTC increased their holdings by nearly 2%, while prices dropped from $39,900 to $38,200.
Short-term BTC holders, on the other hand, appear to be losing patience during the recent price consolidation. According to IntoTheBlock data,
Bitcoin short-term holders continue to decrease their positions. These traders – addresses holding <1 month, tend to follow the price action, and in many cases sell at a loss. The balance held by traders is at the lowest value since Jan 18, as they now hold 1.49m BTC.
What Does Bitcoin’s Future Hold?
Bitcoin’s price has been fluctuating between $35,000 and $45,000 price level. Thus, this could just be another price spike, and nothing decisively can be said at this moment.
However, we have some exciting developments lined up for Bitcoin investors coming up this week. On April 27, Australia will get its first spot Bitcoin ETF, which will be listed on the CBOE equities trading exchange. Furthermore, according to market estimates, this could set net inflows of $1 billion and above.
Another positive trigger for Bitcoin could be that the illiquid BTC supply has been rapidly increasing. Analysts at Blockforce Capital report that a “massive” number of BTC coins have been moved off exchanges, citing data from Glassnode. This supply is going “offline” and into the cold storage. Analysts wrote in a note:
“We have only seen this level of outflow from exchanges four previous times since the start of 2018. Three of those instances correlated with a sharp upward movement in price not too long after.”