In a new update, Mt. Gox has transferred more than 13,000 BTC to a new wallet, which is expected to be transferred to other exchanges. Previously, the transfer rounds had a major impact on the rally that accompanied the German government’s sale of seized BTC. However, the Bitcoin price currently remains largely unchanged, suggesting that the impact on the token and the overall crypto space is negligible.
Are market participants confident about the upcoming price rally? If so, what is stopping the Bitcoin price from rising and sustaining above $60,000?
Market participants seem to be optimistic about the upcoming price action as the rounds of new transfers from the Mt. Gox wallet failed to amplify the bearish activity. One of the main reasons could be the large participation of whales who have been accumulating more tokens. According to Santiment’s data, wallets holding 100-1000 BTC have accumulated nearly 94.7k tokens in the last 6 weeks.
The BTC price has fluctuated wildly over the past few weeks, with many retail traders liquidating their assets, adding to the selling pressure. Meanwhile, major stakeholders, or whales, have continued to stake large amounts of BTC. Despite the bullish sentiment, the BTC price continues to consolidate within a tight range.
Who sells Bitcoin?
The BTC price remains bullish in the long term as the bulls try to push the level higher and sustain it above $62,500. Meanwhile, the new investors seem to be severely shaken as they might have fallen victim to a “panic selling.” According to the data from Glassnode, the short-term holders or the new investors “overreacted” when the BTC price fell below $50,000.
Now that BTC price is hovering around $59,000, short-term holders who bought in early 2024 are at a loss. STH’s MVRV ratio has fallen below 1.0, which is a signal of a prolonged loss that could cause even more panic among investors and increase selling pressure. As a result, they overreacted when BTC fell below $50,000 as there was a slight discrepancy between Bitcoin’s issued and held cost basis.
Therefore, regardless, the markets appear to be largely stable, suppressing the likely bearish sentiments. Therefore, the Bitcoin (BTC) price could spark a healthy surge and attract more liquidity in the coming days. Once the price settles above $65,000, the bearish activity could largely subside, increasing the possibility of further upside in the future.
