“Large Bitcoin whales have strengthened their positions over the past two months, while mid-sized wallets have sold. This divergence in behavior could be a “constructive signal” for BTC in the medium term, according to CryptoQuant. [data]” said Alex Kuptsikevich, chief market analyst at FxPro, in an email.
Blockchain analytics firm Glassnode noted that the market appears much more balanced today than it did a month ago.
“Overall, the market appears increasingly balanced, with long-term conviction providing support while speculative participation remains contained,” he said.
There are also signs of growing participation in BTC futures and options. Recently, a trader (or group of traders) purchased large bull call spreads in Bitcoin, targeting $72,000 by the end of the month.
In short, the buyer profile today appears diversified
However, risks remain. The main short-term hurdle is US Treasury bond issuance, which could drain liquidity from the system and weigh on risky assets.
“Treasury settlements are expected to result in net new issuance of $56 billion, followed by another $37 billion on Thursday and a more modest coupon settlement of $13 billion on Friday. Treasury issuance will likely remain strong through Labor Day, creating a headwind for risk assets as we move into the summer,” Michael Kramer, founder of Mott Capital Management, said in a blog post.
