Bitcoin Whales Buy the Dip, Miners Struggle as BTC Price Prediction Looks Shaky

Bitcoin [BTC]'s latest price crash shocked the crypto markets as a whole. However, even though many market bulls suffered major losses, some addresses

Bitcoin [BTC] price crashed last week, leaving many market bulls in the dust. However, some crypto-addresses seemed to benefit from the cryptocurrency’s recent correction.

Whales bought the dip last week as BTC price crashed by 10%. In fact, wallets holding more than 10,000 Bitcoin seemed to be at the forefront of this buying spree. These large addresses, which are mostly exchange liquidity providers, added to their holdings significantly over the past six weeks.

According to some estimates, these addresses amassed an additional 212,450 BTC. This represented a 1.05% hike in their share of the total Bitcoin supply. Notably, this buying spree began to slow down as BTC price recovered from the lows of $53,000.

The actions of these large wallets could be seen as a sign of confidence in Bitcoin’s long-term potential. This positive sentiment might attract other investors to the market, further boosting the price. This may also help BTC regain previously achieved levels and may help it hit the $60,000-level, if there is no additional selling pressure.

However, this is a double-edged sword. If whales continue to collect large amounts of BTC, it might impact the centralization of BTC. These whale addresses will have a lot of power and could manipulate BTC prices, depending on their behavior. This could leave retail investors vulnerable, especially when these whales decide to sell their holdings.

But, retail investors have not been showing the same enthusiasm as whales.

A recent analysis of Santiment’s data by AMBCrypto revealed that the number of retail addresses in the 0.1 BTC to 1 BTC cohort did not show any interest in buying BTC. If sustained over the long term, this can fuel centralization and leave retail investors at the mercy of whale addresses.

However, this could change if BTC price continues to rise in the coming weeks.

How are miners holding up?

While whale interest might temporarily buoy Bitcoin’s price, struggling miners could exacerbate selling pressure. Daily miner revenue has fallen considerably in recent days, highlighting their financial strain. This decline in revenue could incentivize miners to sell their BTC holdings to cover operational costs, putting downward pressure on the price.

The above is the detailed content of Bitcoin Whales Buy the Dip, Miners Struggle as BTC Price Prediction Looks Shaky. For more information, please follow other related articles on the PHP Chinese website!