- Bitcoin recently saw a resurgence, touching $66,000 even after weeks of struggle.
- However, data indicates that some investors remain hesitant to return, feeling that the March All-Time High (ATH) may be the highest for 2024.
- On-chain analytics platform Santiment hints at a potential market rebound despite the current bearish sentiment.
Bitcoin sees $66,000, but caution persists among some investors; Santiment hints at rebound potential.
A Turnaround for Bitcoin Despite Recent Sell-offs?
Bitcoin made a swift move upward, reaching $66,000, a notable recovery after a tough period. Despite this brief surge, recent analytics reveal a significant drop in active Bitcoin addresses. According to Santiment, addresses with a balance surpassing zero have declined by 672,510 over the last month. This mass reduction indicates a prevalent bearish sentiment, with many holders seeking to liquidate their assets, either to cut losses or secure profits.
Historical trends suggest that such widespread sell-offs could pave the way for a market rebound. Generally, massive liquidations result in oversold market conditions, creating opportunities for investors to purchase at lower prices and setting the stage for a potential recovery in Bitcoin’s value.
The Impact of Over-the-Counter Markets on Bitcoin
In an interesting development, the dominance of over-the-counter (OTC) markets over centralized exchanges (CEX) has become increasingly pronounced. Founder of CryptoQuant, Ki Young Ju, pointed out that whale wallets, often associated with spot ETFs and custodial services, have accumulated 1.45 million BTC this year alone, pushing their total holdings to 1.8 million BTC. This accumulation starkly contrasts with the relatively minor inflows seen in 2021, where only about 70,000 BTC were added over the entire year.
Ju highlighted that this exponential increase, marked by around 100,000 BTC being added weekly, underscores the rising influence of large-scale entities in the Bitcoin market. He emphasized that this isn’t merely internal shuffling from old custodial wallets, noting an increase in balances among newer whale wallets.
Conclusion
In summary, while Bitcoin has showed signs of recovery, hitting $66,000, investor sentiment remains cautious. The significant drop in active addresses and the prevailing bearish outlook reveal investor skepticism. However, the increased activity in OTC markets and accumulation by whale entities suggest a nuanced market landscape. Historical patterns and current trends both hint at the potential for a rebound, making this a critical time for stakeholders to closely monitor market movements.
