While Bitcoin struggles to extend gains, on-chain data shows increased movement of old coins. As the Bitcoin Average Dormancy chart shows, this trend recently hit a 13-year high.
More Old Whales Moving Coins
The Bitcoin Average Dormancy shows the average number of days each BTC has been dormant. On-chain data indicates that coins held for 3 to 5 years have changed hands and moved to new owners.
BTC dormancy chart. Source: CryptoQuant
While there was movement, interestingly, data shows that they were not transferred to exchanges. Instead, they were likely traded over the counter (OTC). Usually, any transfer to centralized exchanges could suggest the intention of selling. The more coins hit these exchanges, especially from whales, the higher the chance of price dumping. However, if trades are made via OTC, the impact on spot rates is negligible, which is a positive for bulls.
Further analysis of these transfers using the Spent Output Profit Ratio (SOPR) indicator suggests that whales moving them made decent profits. Historically, whenever whales dump and register profits, prices tend to dip.
Prospects of Bitcoin Spot ETFs in Market Stability
However, in a post on X, one analyst says prices will likely increase because of the impact of spot Bitcoin exchange-traded funds (ETFs). These derivatives are like a buffer against price drops, considering the pace of inflows in the past weeks. Spot ETFs allow institutions to gain regulated exposure to BTC. Coupled with decreasing outflows from GBTC, the odds of prices rising remain elevated.
According to Lookonchain data, GBTC unloaded 750 BTC on April 23. However, Fidelity and other eight spot ETF issuers bought 1,513 BTC on behalf of their clients. Spot Bitcoin ETF issuers sell shares representing BTC holdings. These coins can be purchased from secondary markets, via OTC platforms, or directly from miners.
Spot Bitcoin ETF flow data. Source: Lookonchain
Market Reactions and Future Price Movements
Despite these developments, BTC prices have remained subdued, struggling to surpass the mid-April highs of $68,000. For a definitive bullish trend, market analysts are looking for a breakout above $73,800 with increased trading volume, suggesting a strong buyer presence. This shift would need to overcome the established liquidation barriers to set a new course for potential retests of all-time highs.
Bitcoin (BTC) Overview
At the time of this writing, Bitcoin (BTC) is trading at $64,342 with a 3.5% decrease. The trading volume is $31,742,679,733 and the market capitalization is $1,266,890,796,777.
You can also buy Bitcoin (BTC) easily on Bitrue. Bitrue is dedicated to providing safe, convenient, and diversified services to meet all crypto needs, including trading, investing, purchasing, staking, borrowing, and more.
Source: CoinGecko
Conclusion
The recent activities of Bitcoin whales, moving old coins through non-traditional routes like OTC platforms, together with the growing influence of spot ETFs, present a complex yet hopeful scenario for Bitcoin’s price trajectory. As institutional and long-term investors play increasingly significant roles, the market awaits a possible bullish reversal that could set new benchmarks for the cryptocurrency.
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