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Bitcoin ETFs and exchanges now have eight times more influence than miners, according to a new report.
pressure from the sell side Miners It diminishes with every half, according to a new analysis from glass knot He says.
while, Central exchanges And Exchange Traded Fund Service providers now have up to eight times more influence – a powerful example of how the market is transforming.
This chart helps illustrate what is changing. The largest group of Bitcoin They are monitored by Glassnode and are located in CEXs.
This amounts to three million BTC, or about one-seventh of the total supply that will ever exist.
It is also interesting to see how the popularity of the 11 companies that have issued ETFs based on the spot price of Bitcoin has risen since January.
They now collectively hold 887,000 BTC on behalf of investors, meaning they create much more sell-side pressure on days when there are large outflows.
Once the huge reserves are kept, Satoshi Nakamoto If that is taken out of the equation, miners currently own around 705,000 BTC.
Glassnode says Bitcoin price had a very tough time – with the German government evacuation Almost 50k BTC in just a few weeks. However, I noticed:
“The majority of the selling was spread over a very short period of time between July 7 and July 10, with over 39.8k BTC flowing out of classified wallets. Interestingly, this selling occurred after the market bottomed out at around $54,000 – suggesting that the market was on the cusp of the news.”
glass knot
Although government cryptocurrency sales are a concern for ordinary investors, they remain relatively rare.
Although it is not expected that ETH ETFs Although the demand for Ether will be close to that of BTC, Wall Street could end up having a significant impact on Ether’s performance.
The supply has already been significantly reduced by Place betsWe can see that the amount of ETH in circulation is decreasing very quickly.
Glassnode went on to note that when compared to Bitcoin, there appears to have been “significantly less interest” in Ethereum compared to the 2021 rally, when daily ETH exchange flows were roughly on par with BTC.
“This suggests that the degree of speculative interest in 2024 has been relatively muted, and is consistent with ETH’s generally weaker performance relative to BTC since the 2022 cycle lows.”
glass knot
Returning to Bitcoin, it’s also interesting to see that the number of Bitcoin holders who made profits remained “strong” — even as the German government-led selloff saw the world’s largest cryptocurrency fall to lows of $53,500. At that point, Glassnode estimates that around 25% of the coins were in unrealized losses, meaning they were now worth less than what investors paid for them.
“This suggests that the degree of speculative interest in 2024 has been relatively muted, and is consistent with ETH’s generally weaker performance relative to BTC since the 2022 cycle lows.”
glass knot
The story gets even more interesting when you focus on the so-called “short holders,” as 66% of the bitcoin they owned fell into the red during this period — one of the largest declines ever recorded.
“For the opposing group, long-term holders of cryptocurrencies, there has been a slight shift in the proportion of supply they hold in dividends. This shows that relatively few investors from the 2021 bull run are still holding onto their cryptocurrencies.”
glass knot
There has been something of an impressive recovery in the price of Bitcoin now that the German government has finished dumping Bitcoin on the market – with the price of Bitcoin breaking through nearly $68,500 in the wake of Joe Biden withdraw from the presidential race.
Analysts likened this to a “relief” that the worst of the selling pressure is over, but lower trading volumes over the summer months could still pose a challenge.
All eyes are now on whether Bitcoin can break the psychologically important $70,000 barrier – a level it has not reached since June.
Besides, the biggest challenge will be to surpass the all-time high of $73,750 which was recorded on March 14, 2014.
A new record here would send Bitcoin back into an era of unprecedented territory — and such momentum would certainly lead to a renewed surge in ETF inflows.
