Bitcoin’s (BTC) price has risen in the last 24 hours after a bearish wave saw it plunge to an intraday low of $53,906.57. However, at press time, the Bitcoin price had recouped at $56,465.3, reflecting a 3.80% surge from the intraday lows.
BTC/USD 1-day price chart (source: CoinMarketCap)
Government Bitcoin Sales Minimal in Bull Market
More recent data has indicated that the impact that Bitcoin offloads bring to the market is way smaller than initially believed. According to Ki Young Ju, founder and CEO of the on-chain analytics platform CryptoQuant, adding only about $9 billion from government-seized BTC sales brings the total realized market cap to this.
This is only 4% of the $225 billion inflows since the latest bull market started in 2023.
Govt #Bitcoin selling is overestimated.
$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.
It’s only 4% of the total cumulative realized value since 2023. Don’t let govt selling FUD ruin your trades. pic.twitter.com/12fy2sKsXH
— Ki Young Ju (@ki_young_ju) July 5, 2024
Ki explains that the FUD of the government BTC sales is exaggerated and should not affect people’s trading decisions whatsoever. The fact that BTC transfers made by the U.S. and German governments were substantial was not severe enough regarding market inflow.
Bitcoin Whales Increase Holdings
However, whales, big investors, have been piling up BTC with both hands in the recent past, much to the pain of retail investors selling. Data analytics firm Santiment shared that addresses holding more than 10,000 BTC increased their holdings by another 212,450 BTC over the past six weeks, recording a new balance of over six years.
Smaller populations of whales have also been burgeoning, with some holding more than 10 BTC at the moment. This whale accumulation may indeed be showing some great confidence in the long-term potential of Bitcoin. Indeed, recent price volatility seemingly offers a commercial opportunity to these investors, who are absorbing supply from other market participants, particularly Bitcoin miners.
Institutional Interest Through Bitcoin ETFs
Institutional investors are also regaining their interest in Bitcoin, primarily through spot Bitcoin ETFs. On the last trading day of the week, after minor outflows were recorded in the past days, the spot Bitcoin ETFs were noted with $143 million in inflows, majorly driven by Fidelity. This could mean institutional investors are buying this dip, making the market even more bullish.
Spot Bitcoin ETFs keep gaining massive inflows into their funding as reports have indicated an increasing interest from institutional investors. Such renewed activity suggests confidence in the asset’s future, with significant players taking advantage of lower prices to increase their holdings.
#Bitcoin currently lacks significant support. The main key demand wall is around $47,000, and for the bull run to resume, $BTC must close and hold above $61,000. pic.twitter.com/9cD2otd4ZK
— Ali (@ali_charts) July 5, 2024
This includes a current market behavior that would take the shape of some kind of cautious optimism shared among the big-time investors and institutions. Though the price weakness has emanated from government sales and other pushes and pulls, the overall sentiment appears very resilient. The Bitcoin rally will keep going on if the price can manage to break some critical levels, with $61,000 coming in as a strong resistance point, say the analysts.
Market observers have constantly tracked the critical areas of support and trendlines. Among them, the Supertrend floor is resting at $52,000, which could mean that drops toward the historic norm are still to be expected. Other important metrics include the 200-day moving average, currently at $58,550, and Bitcoin’s short-term holder cost basis of $64,175.
