Key Points
- Despite large sell-offs, certain investors continue to buy Bitcoin, supporting its price movement.
- Bitcoin redistribution is occurring, with ‘sharks’ (holders of 100-1,000 BTC) accumulating more than any other group.
Bitcoin [BTC] is showing signs of reclaiming the $100,000 region, trading just below at $98,215.61 at the time of writing. This follows a minor price gain of 0.42% in the last 24 hours.
The rally is predicted to continue, potentially pushing BTC into the marked zone on the chart. This is in line with the growing bullish sentiment from large cohorts of investors, spot traders, and miners.
Bitcoin Redistribution
A redistribution of Bitcoin is currently taking place in the market. This means that the group of market participants holding more BTC is changing.
The shift has been moving from whales (those holding at least 1% of the circulating BTC supply) to two other cohorts: Shrimp (holding less than 1 BTC) and sharks (holding between 100–1,000 BTC). However, sharks are leading the way.
Data from Glassnode shows that Bitcoin sharks currently have a dominance of 20%, meaning they are accumulating more BTC than any other cohort. This redistribution, particularly between small and relatively large holders, suggests growing confidence among these cohorts, who likely see BTC’s dip below $100,000 as a buying opportunity.
Bitcoin Miners and Spot Traders
Bitcoin miners, who are crucial in maintaining the chain’s integrity, have been gradually selling, as indicated by the Miner Position Index (MPI) on CryptoQuant. The MPI read negative 0.8 at the time of writing, indicating low selling pressure. This suggests miners are likely taking profits to cover operational costs.
Spot traders are also beginning to align with market sentiment, as there’s been significant BTC purchasing activity in recent days. In the past 24 hours alone, Exchange Netflow data shows 1,100 BTC were purchased from cryptocurrency exchanges—a significant increase from the 262 BTC purchased the previous day.
This purchasing trend, if it continues, would indicate a decisive bullish turn among spot traders, aligning with the current sentiment from BTC investor groups and miners.