The Bitcoin course remains idle in a stable lateral position. However, whales are using the consolidation to hunt bargains.
After a promising start, the crypto market ends the week under a red sign. Total market capitalization is three percentage points down on the day and slipping back to $ 1.6 trillion. And the Bitcoin course is not getting anywhere either. At $ 37,783, the crypto draft horse buckled 3.8 percent. After all: on a weekly basis, the BTC rate posted a small plus of 2.2 percent.
The altcoins are also dropping feathers. Ethereum is down 4.7 percent on a daily basis, dropping to $ 2,345. Compared to the previous week, the second-largest cryptocurrency has dropped by almost six percent. Binance Coin (BNB) and XRP are down 2.2 percent in a 24-hour comparison. Cardano (ADA) and Dogecoin (DOGE) share a price discount of around three percent, while Uniswap (UNI) gives way by 5.4 percent. The loser of the day among the ten largest cryptocurrencies is Polkadot (DOT) with a loss of 7.1 percent.
Accordingly, there is still rather depressed investor sentiment in the crypto market. The Fear an Greed Index is still in the “fear zone” with 25 points.
Bitcoin looking for orientation
This disorientation is also evident in Bitcoin’s Spent Output Profit Ratio (SOPR). The metric developed by Glassnode shows profits and losses over a certain period of time and thereby captures a rough insight into the market sentiment. The BTC purchase price is set in relation to the sales price. A value of over 1 indicates that the Bitcoin was sold at a profit. If the value falls below this, the coins are spent on average with a loss. Using the SOPR, an overall picture that tends to be bullish or bearish can be measured.
Currently, however, the SOPR is oscillating exactly between losses and gains, which reflects the indecision on the market. According to Glassnode, this shows “that the market is uncertain about the macro direction”.
Small investors in particular seem to be unsettled. Because there is a shopping mood among the big Bitcoin whales, as data from Santiment shows. The Bitcoin addresses with a stock between 100 and 10,000 Bitcoin have accumulated a good 90,000 BTC in just under a month. This increases their share to 9.11 million Bitcoin, which corresponds to almost half of the total amount in circulation.
There is still a Hodl mood among the miners. CryptoQuant’s Miners’ Position Index (MPI) has been just below zero since March. As a result, the crypto miners keep their wallet stocks tightly together.
However, a look at the stock exchange reserves shows that Bitcoin is currently under selling pressure. In the past two months, BTC stocks have increased by around five percent. As can be seen from the Glassnode graphic, the inflow correlates strongly with the loss in value of Bitcoin.
The next trading days are likely to continue to trend sideways. The SEC’s advances in the direction of a Bitcoin ETF could not change this either. And even MicroStrategy’s bullish behavior doesn’t seem to have any effects on the market at the moment.