Bitrabo Editorial
Bitcoin is currently experiencing a bearish trend with struggles to maintain last week’s positive momentum. Despite hopes of a price recovery beyond $69,000, bears have remained strong, even breaching the upper levels of the current consolidation phase.
Currently, Bitcoin is down by 6% from recent highs and approximately 12% from its all-time peak. The decreasing prices signal a bearish trend with lower lows compared to the all-time highs.
Increasing Activity of Bitcoin Whales
Despite these bearish indicators, there are indications of accumulation by buyers at current prices. As Bitcoin dips below $66,000, a major support level, on-chain data provided by Ki Young Ju reveals significant activity among whales, suggesting strength in the market.
Although the price may be decreasing, CryptoQuant’s CEO, Ki Young Ju, highlights that whales have been actively purchasing in recent weeks. Within a month, 358,000 BTC have been transferred to addresses known for holding onto their assets rather than reacting to price fluctuations like retail investors.
These addresses are not linked to spot Bitcoin ETF issuers or miners, indicating a different source of accumulation. In contrast, entities like BlackRock and Fidelity have been purchasing over 53,000 BTC in July on behalf of their clients.
Smooth Handling of Mt. Gox Distribution Impact
Interestingly, the surge in whale activity coincides with the completion of Mt. Gox creditor repayments by the Kraken exchange. The market had anticipated potential turmoil from the Mt. Gox distribution between late June and early July.
However, recent market observations show that the handling of the Mt. Gox distribution did not cause significant volatility, with spot trading volumes and exchange flows remaining stable on Kraken, as noted by Ki Young Ju.
Furthermore, as users re-enter the crypto market, the increase in USDT and stablecoin liquidity aligns with the Mt. Gox repayments through Kraken, historically preceding notable price surges in Bitcoin.