Bitcoin Price Slips Below $68k as Mt.Gox Moves Over $9B Worth of BTC

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As a researcher with a background in cryptocurrencies and blockchain technology, I find the ongoing Bitcoin (BTC) price consolidation intriguing. While some may view the decline in whale activity as bearish, I believe it’s essential to consider other factors at play.

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin (BTC) could not break through the resistance level at $72,000 on Monday, leading to consolidation and a subsequent dip below $68,000 on Tuesday. Many traders have shifted their attention towards meme coins, with popular ones like Pepe (PEPE), Floki Inu (FLOKI), dogwifhat (WIF), Bonk (BONK), and Turbo (TURBO) experiencing notable price increases in recent days.

The cryptocurrency discourse in the US continues to unfold, leading to notable enhancements in market fluidity for the budding sector. Institutional investors now have easier access to the digital asset realm via Bitcoin spot ETFs.

In an ideal scenario, the majority of the altcoin market responds with optimism and bullish sentiment when the price of Bitcoin increases.

Bitcoin (BTC) Whales on a Technical Rest

Based on Santiment’s analysis of blockchain data, there has been a 0.4% decrease over the past two months in the number of Bitcoin wallets holding between 10 and 10,000 units. Contrary to popular belief, large Bitcoin transactions worth $100,000 or more have decreased in frequency during the previous three-month period. This contrasts with the notion that the introduction of spot Bitcoin ETFs has boosted overall trading volume.

As a researcher studying the cryptocurrency markets, I’m excited to share our latest findings on the accumulation patterns of large investors in Bitcoin, Ethereum, XRP Ledger, and Chainlink. By closely monitoring the actions of these “whales” and “sharks,” we can identify key stakeholders and make informed decisions to optimize your portfolio. Stay ahead of market trends with our insightful analysis.
— Santiment (@santimentfeed) May 28, 2024

Despite the decrease in trading activity from large Bitcoin holders, or “whales,” this doesn’t necessarily mean a bearish outlook. The whales have not been selling their Bitcoins. Moreover, global Bitcoin supply from miners is being outpaced by increasing demand.

Recently, Bitcoin wallets connected to Mt.Gox, the now defunct crypto exchange, have shown signs of activity again after over five years. Based on blockchain information, approximately 141,686 Bitcoins were transferred from these wallets to unidentified addresses within the last day.

Previously reported by CoinSpeaker, Mt.Gox has been working towards compensating affected clients for several years. Regrettably, not all funds can be retrieved as they have likely been utilized extensively on the blockchain over the last ten years.

Silver Lining

The Bitcoin price drop has created a favorable environment for altcoins as investors seek alternatives. Based on Santiment’s analysis of on-chain data, Ethereum whales holding over 10,000 Ether units have amassed approximately 21 million Ether units during the past 14 months.

As a crypto investor, I’ve noticed that XRP whales, those holding more than 10 million units, have accumulated approximately 3.2 billion additional units within the past 16 months.

The latest green light for Ethereum-based spot ETFs in the US and Hong Kong markets has sparked renewed optimism among altcoin investors. Additionally, Bitcoin’s declining dominance suggests a significant market shift that could lead to a reversal of the current trend in the upcoming months, with the improving ETH/BTC ratio being a notable indicator.

As an analyst, I would assess that Bitcoin’s (BTC) price movement lies within a consolidation range, with prices likely oscillating between the support at $61,000 and resistance at $72,000 in the near term. To break out of this channel, strong buying pressure is required to push the price above $74,000 consistently.

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2024-05-28 11:27