Recent analysis from on-chain intelligence platform CryptoQuant reveals that the total Bitcoin holdings of major organizations are increasing. Analysis reveals that due to whales’ relentless accumulation, their assets have increased to levels we last saw in July 2022.
Large organizations continue to accumulate BTC
According to CryptoQuant’s weekly crypto report, the BTC holdings of these organizations increased from 3.694 million in December 2022 to 3.964 million at the time of writing. Analysts state that large investors expanding their assets indicate increased demand for investment purposes. Therefore, he notes that this move is associated with higher prices of BTC. Some major institutions accumulating BTC, with the exception of Grayscale’s GBTC, are new spot Bitcoin exchange-traded funds (ETFs). These funds have become the primary source of demand for the leading cryptocurrency. The funds in question held approximately 300,000 BTC at the time of writing.
cryptokoin.comAs you follow from , new ETFs and other large holders have absorbed BTC, although several large institutions have dumped large amounts of their holdings, selling as much as 300,000 BTC per day over the past few days. While large institutions continue to accumulate, sales activity from Bitcoin miners remains low.
Bitcoin miner sales decreased!
CryptoQuant analysts say miners’ daily sales have been less than 100 BTC in the last few weeks. They also note that it is a stark contrast from the levels of 1,000 BTC and above in November-December 2022. In this context, analysts make the following assessment:
Miner selling activity remained low as higher Bitcoin prices somewhat offset the sharp decline in transaction fees. Miner P/L Sustainability indicates that miners are being paid fairly, following extremely low payouts in early January (blue area), when the Bitcoin price dropped to $38,000.
Short-term holders started to unload
On the other hand, short-term BTC holders who were traders started selling when BTC crossed $50,000. Analysts say this is for traders to realize high profits. The unrealized profit margin for this group of investors increased significantly as BTC surpassed $50,000. However, it is still halfway from peak levels.
According to analysts, the unrealized profit margin, currently 22%, could indicate a price correction of around 40%, as traders selling at high margins have historically triggered a decline. A price correction is also possible if the unrealized profit margin falls below the 30-day moving average. Meanwhile, high funding rates make it expensive to open new long positions. Therefore, the main risks for BTC selling may come from short-term Bitcoin holders and derivative markets.
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