Bitcoin, the leading #cryptocurrency , has been riding high for months on speculation about the approval of the Spot Bitcoin ETF, but now it appears to be cooling off. Because of this, some are wondering if the surge is ended, and the recent behavior of the crypto token's biggest holders lends credence to this view.
Crypto Whales Sell Off Some of Their Bitcoin Holdings
Bitcoin whales sold over 50,000 $BTC in the last week, according to a report from the market intelligence platform Santiment, which crypto analyst Ali Martinez emphasized in a post on his X (formerly Twitter) platform. Many are wondering why these "whales" are selling off part of their Bitcoin holdings, and it has caused eyebrows to raise.
Coincidentally, institutional investors have been selling digital assets recently, as mentioned in CoinShares' most recent weekly report, which also showed small withdrawals from digital asset funds last week. Supposedly, $16 million was taken out of these accounts. On the other hand, everything should be OK according to the asset manager's report.
According to CoinShares, investors are likely cashing out of their digital asset investment funds due to profit-taking rather than a change in mood. Since this is the case, it's reasonable to think that the whales' sentiments are what caused the latest Bitcoin sell-off. This makes a lot of sense as well, given that 89% of the Bitcoin supply is profitable, as stated recently by Santiment.
In the meanwhile, investors are pouring into BTC, as the number of non-zero Bitcoin addresses has risen to 916.8 million, according to Santiment. As the BTC Halving approaches and the Spot Bitcoin ETF is expected to be approved, many appear to be interested in investing in the flagship cryptocurrency.
Although Bitcoin's price has cooled, there's still cause to be optimistic that the climb is far from finished; by the end of January 2024, it may reach $50,000. This is expected to occur following the SEC's approval of the pending Spot Bitcoin ETF filings, according to Matrixport, a crypto financial services provider.
Matrixport mentioned that while they were creating their pricing projection, they looked to past examples for guidance. As an example, consider the 2017 introduction of Bitcoin futures by the CME Group. According to reports, Bitcoin's value increased by 196% during a six-to seven-week period beginning with the debut. Somewhat similarly, they anticipate that it will occur again.
Additionally, the company still thinks Bitcoin will make a breakthrough before the year is out. The fact that they found that the price of bitcoin tends to rise between the holidays and the new year lends credence to their forecast. Between November of current year and April of 2024, Matrixport had forecasted that Bitcoin will reach $45,000.
