As whales began to accumulate BTC, the price of Bitcoin surged. Miner revenue was unaffected and continued to decline, leading to increased selling pressure.

  • Bitcoin rebounded, causing whales to accumulate BTC.

  • Miners see selling pressure, while traders turn bearish.

The cryptocurrency market has experienced a remarkable recovery in recent days, led by Bitcoin [BTC]’s recovery and successful recapture of the $28.2k price level.

Whales show interest

Prior to the price surge, Bitcoin activity occurred over the weekend. However, other factors such as whale behavior also affect BTC prices. According to data from Glassnode, whales have continued to increase their BTC holdings over the past few months.

In terms of distribution, the vast majority of BTC is currently held by addresses holding 10-10,000 BTC. Whale accumulation may help increase the price of BTC in the future. However, this makes retail investors more susceptible to the behavior of whales, which in turn may lead to large price fluctuations.

Despite the high concentration of BTC held by whales, retail investors have the same interest in accumulating BTC as whales.

However, despite the rise in Bitcoin prices, miners may not show the same enthusiasm for Bitcoin. According to BTC.com, miner revenue has plummeted from $41.74 million to $29.01 million in the past month. Meanwhile, Bitcoin mining difficulty has continued to increase significantly during the same period.

As difficulty increases, miners need to devote more computing power and resources to mine BTC, which may lead to higher electricity costs and reduced mining profitability.

High difficulty levels make it more challenging for individual miners to compete and receive block rewards, potentially forcing smaller miners to exit the network and consolidating mining power into the hands of larger, more resourceful operators.

Declining profits for miners could force them to sell Bitcoin to make ends meet. The increasing selling pressure from these miners could have a negative impact on BTC’s price in the future.

Bitcoin traders turn bearish

Despite the volatility Bitcoin has experienced over the last month, open interest in Bitcoin options continues to rise. Moreover, bearish sentiment around BTC has also spiked. This is evidenced by the increasing call options ratio for Bitcoin.

According to data from TheBlock, BTC’s put-call ratio has increased from 0.42 to 0.48 over the past few days.