16,000 Dormant Bitcoins Move Amidst $7 Billion Whale Losses
A cohort of long-dormant Bitcoin amounting to 15,965 BTC moved into circulation. These coins, which had been inactive for about three years, were transferred amid a price drop below $110,000, totaling approximately $1.724 billion.
Market Movements and Implications
- The movement of these old coins during a market pullback could indicate profit-taking or internal account reshuffles.
- Motives for such transfers can include tax planning, exchange custody changes, or position adjustments by large holders.
New Whales Underwater
- Newer large holders who purchased Bitcoin at recent highs are experiencing unrealized losses nearing $7 billion, with an average entry cost of $113,000 per BTC.
- Despite this, accumulation continues with 26,500 BTC flowing into large wallets recently, signaling strategic buying during the dip.
Price Dynamics and Targets
- The market is watching support levels around $107,000–$108,000 closely to gauge potential price movements.
- Debate over future price targets persists, with some predicting highs of $200,000–$250,000 driven by market policies and inflows.
- Galaxy Digital's record quarter earnings underscore growing institutional interest, supporting bullish long-term views.
Open Interest Trends
- Open interest has declined by 30%, reducing speculative pressure and potentially stabilizing price trends.
This combination of selling and buying activities creates a delicate balance in the current market dynamics.