1. Bitcoin whales are accumulating
Data from Santiment shows that since mid-Q4 2023, the market has witnessed an increase in the volume of large Bitcoin wallet balances.
In the past two months, wallets holding between 10 to 10,000 BTC have accumulated over 154,000 BTC. Currently, they account for approximately 67% of the total Bitcoin supply on the network. It can be observed that this accumulation trend has intensified in the final two weeks of June. This has pushed the price of BTC towards the $31,000 resistance level.
In the crypto market, investors who own between 10 to 1,000 BTC can be considered “sharks.” Investors who own between 1,000 to 10,000 BTC can be considered “whales.”
2. Increase in the scarcity of the supply and decreased liquidity
Why is it important to pay attention to the scarcity of supply and decreased liquidity? If the number of Bitcoin shark/whale wallets increases but their behavior involves frequent trading, the likelihood of maintaining the price of BTC is not high. This is because they can sell their BTC at any time.
Glassnode data tracks addresses with low liquidity activity and categorizes them as part of the decreased liquidity supply. As the decreased liquidity supply increases, it reflects the steadfastness of holders in holding onto Bitcoin.
It can be observed that, over time, those who have purchased Bitcoin tend to have less tendency to sell it and often plan to hold it for the long term. This breakthrough in decreased liquidity supply contributes to increasing the scarcity of BTC until the end of 2023.
3. Increasing investor buying readiness mentality
When many investors choose to hold stablecoins and not cash them out of the market, it is highly likely that they are waiting for an opportunity to buy in. This mentality is extremely beneficial for the price of Bitcoin.
It can be seen that in the past month of June, the proportion of stablecoins has gradually increased and made a significant breakthrough, returning to the high levels seen during the 2020 uptrend. Despite changes in market share within the stablecoin ecosystem due to several incidents of peg loss, the overall dominance of stablecoins in market capitalization continues to grow.
This strong buying sentiment will make it difficult for Bitcoin’s corrections to trigger panic selling but rather present buying opportunities. This provides a basis for investors to expect a positive outlook for Bitcoin in the final months of 2023.
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