Bitcoin, the world’s largest digital asset price, registered a drop of around 2% on Saturday after breaching the crucial $38k barrier. As Bitcoin price surge helped the market to maintain its positive momentum, data reveals that many investors choose to take their money out of it.
$1 bln withdrawn, 25k BTC off exchanges
According to Ali, an on-chain analyst reported that around 25,000 Bitcoin (BTC) have been withdrawn from known crypto exchange wallets over the past 2 weeks. These withdrawals are valued at nearly $1 billion.
In another report, data provided by IntoTheBlock revealed that around 83% of Bitcoin addresses are currently “in the money,” with approximately 42.04 million addresses in profit. However, 7.53 million addresses are in loss (14.98%), while, 679,660 addresses are at their break-even points (1.35%).
This implies a strong performance in comparison to Ethereum (ETH). Despite being a more affordable option in the crypto market, only 74.69% of Ethereum addresses (77.97 million addresses) are currently in profit. However, around 23.72% (24.76 million addresses) are in losses, while 1.59% (1.66 million addresses) are at their break-even points.
New price high recorded
Bitcoin price touching $38,000 is the first since May 2022. It is important to note that BTC has maintained above $37,700 which indicates a potential upward push.
This price increase aligns with investor expectations for possible approval from the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). There has been notable activity in the secondary market for Grayscale Bitcoin Trust (GBTC) shares. Investors have bought a significant number of GBTC shares at a deep discount to net asset value (NAV) in anticipation of the trust’s potential conversion to an ETF.
JPMorgan analyst estimates that around $2.5 billion has flowed into GBTC since the beginning of the year, rising to $2.7 billion when factoring in the covering of short interest. This buying activity is speculated to be largely speculative, anticipating the conversion of GBTC to an ETF. Investors may choose to take profits once GBTC undergoes the conversion process.
