NEWS $BTC
INVESTOR BEHAVIOR ACCUMULATION AND MASS SELL-OFF
This week Bitcoin fell to 91,000 USD on Monday amid concerns about a possible trade war between the U.S., Canada, Mexico, and China. Although BTC soon briefly rose above 102,000, it is currently trading at 96,000. According to Glassnode, retail investors in BTC are accumulating 10,627 BTC daily and are on an accumulation wave since mid-December. These small investors are buying Bitcoin at an accelerated average rate of 10,627 BTC per day, representing a 72% increase compared to last year's daily average of 6,177.
This aggressive buying marks a stark contrast to their behavior in November when they chose to take profits as Bitcoin surpassed 100,000 dollars. However, their renewed accumulation despite BTC's issues since December suggests strong confidence in the long-term profitability of the asset.
On the other hand, BTC whales are offloading their assets. Since November 24, these large investors have been moving Bitcoin to exchanges at an alarming average rate of 32,509 per day, suggesting a possible nine-fold increase in selling pressure compared to the annual average of BTC.
Generally, a large mass sell-off by market whales is a bearish signal. However, the Bitcoin community remains optimistic, as a significant portion of the offloading by market whales can be attributed to profit-taking rather than a loss of confidence.
Additionally, the recent increase in accumulation by retail investors has served as a supply absorber, mitigating potential drastic price declines. Although BTC is struggling to find some stability, retail investors need to maintain their current demand level, which is crucial to sustaining the bullish structure of the asset.