According to CryptoQuant‘s analysis, large entities have significantly increased their bitcoin (BTC) holdings, reaching levels last seen in July 2022.
This accumulation of BTC by large investors corresponds with the surge in BTC prices, fueled in part by the emergence of new spot Bitcoin exchange-traded funds (ETFs) holding around 300,000 BTC collectively.
While some large entities have been selling off their assets in substantial quantities, the influx of BTC into new ETFs and other major holders has absorbed these sales.
BTC miners have reduced their selling activity, with daily sales dropping below 100 BTC in recent weeks, indicating improved profitability due to higher BTC prices.
Short-term BTC holders, primarily traders, have started selling their assets to realize profits following BTC’s surge past $50,000, leading to a substantial increase in their unrealized profit margin.
However, there are signs of a potential price correction if the unrealized profit margin exceeds its 30-day moving average or reaches approximately 40%.
Risks associated with BTC selling may arise from short-term holders and derivative markets, where high funding rates have made opening new long positions expensive.
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