Bitcoin presents a “generational investment opportunity,” but the whales disagree
- Bitcoin’s price and energy costs indicate a positive outlook for BTC in the long term
- Great addresses and whales don’t share the same feeling either
Bitcoins [BTC] The recent rally has brought with it a lot of optimism and speculation about the future. In fact, one analyst has suggested that the electricity costs of Bitcoin may lend some support to the unbridled optimism surrounding the royal coin.
Read Bitcoin Price Prediction 2023-2024
Analyst Charles Edwards, founder of the Capriole Fund, claimed in an April 5 chirping that historically, when the price of Bitcoin matched the cost of energy, it has provided a rare opportunity for generational investment in Bitcoin.
According to him, this is a very reliable indicator of BTC’s long-term prosperity.
Source: Trading View/Charles Edwards
Many BTC holders’ behavior suggested that they also believe in the long-term prospects of Bitcoin. In fact, holders from most cohorts were observed accumulating Bitcoin, according to Glassnode’s data.
However, it is worth noting that whale addresses do not share the same optimism for the cryptocurrency as other owners.
Inspects the components of #Bitcoin Accumulation Trend Score, we note that 5/6 wallet cohorts have shifted towards balance increases.
However, the largest of whales (> 10K BTC) remains the exception, continuing the trend of coin distribution.
— glassnode (@glassnode) 5 April 2023
Additionally, according to Glassnode’s data, the number of addresses with more than 10o BTC has started to decrease. Figures for the same hit a 3-month low at press time, further indicating skepticism from the market’s whales.
Source: glassnode
Traders are turning bearish
In addition, traders’ sentiment has begun to echo the whales’ bearish behavior. In fact, Coinglass’ data suggests that the percentage of short positions taken against BTC rose from 49% to 51.2% in recent days.
Another metric that indicated potentially higher selling pressure for BTC is the falling miner earnings. If miner earnings continue to drop the way they have in the past few days, many miners will be forced to sell their BTC holdings for a profit in the future.
Source: blockhain.com
The increasing MVRV ratio for BTC is also not much help for long-term BTC holders.
The growing MVRV ratio implies that most BTC holders are relatively more profitable. This will make it much more tempting for short-term owners to sell their positions at a profit going forward.
Source: Sentiment
How much is 1,10,100 BTC worth today
Therefore, it seems that the presence of both bullish and bearish factors will make it difficult to predict the future of Bitcoin.
A surprising Easter egg
Despite the prevailing bearish sentiments against BTC from traders, it seems that the number of supporters for BTC may continue to rise. This is evident from the recent discovery of a PDF file containing the Bitcoin Whitepaper, found hidden on all Mac devices.
It suggests that some Bitcoin advocates may have made their way onto Apple’s team.
if you’re using a Mac, it’s a copy of the #Bitcoin White paper hidden on your device.
Type this into the terminal:
open /System/Library/Image Capture/Devices/VirtualScanner.app/Contents/Resources/simpledoc.pdf
— McShane (@mcshane_writes) 5 April 2023
