- Bitcoin’s price and energy costs indicate a positive outlook for BTC in the long run
- Large addresses and whales do not share the same sentiment either
Bitcoin’s [BTC] recent rally has brought with it a lot of optimism and speculation about its future. In fact, an analyst has suggested that the electrical costs of Bitcoin could provide some backing to the unbridled optimism surrounding the king coin.
Read Bitcoin’s Price Prediction 2023-2024
Analyst Charles Edwards, Founder of the Capriole Fund, claimed in a 5 April tweet that historically, whenever the price of Bitcoin matched its energy expenses, it has presented a rare chance for generational investments in Bitcoin.
According to him, this is a very trusted indicator of BTC’s prosperity in the long term.
Source: Trading View/Charles Edwards
Many BTC holders’ behavior suggested that they believe in the long-term prospects of Bitcoin as well. In fact, holders from most cohorts were observed to be accumulating Bitcoin, according to Glassnode’s data.
However, it’s worth noting that whale addresses do not share the same optimism towards the cryptocurrency as other holders.
Inspecting the components of the #Bitcoin Accumulation Trend Score, we note that 5/6 wallet cohorts have shifted towards balance increases.
However, the largest of Whales ( > 10K BTC) remain the exception, continuing their trend of coin distribution.
https://t.co/qAtfDfz4ha pic.twitter.com/l3P7plVmxT
— glassnode (@glassnode) April 5, 2023
Additionally, according to Glassnode’s data, the number of addresses holding more than 10o BTC have started to decline. Figures for the same hit a 3-month low at press time, further indicating skepticism from the market’s whales.
Source: glassnode
Traders become bearish
Also, trader sentiments have started to echo whales’ bearish behavior. In fact, Coinglass’s data suggests that the percentage of short positions taken against BTC rose from 49% to 51.2% over the last few days.
Another metric that indicated potential higher selling pressure for BTC is the declining miner revenue. If miner revenue continues to decline in the same fashion as it has over 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 isn’t of much help either to long-term BTC holders.
The growing MVRV ratio implies that most BTC holders are relatively more profitable. This would make it much more tempting for short-term holders to sell their positions for a profit going forward.
Source: Santiment
How much are 1,10,100 BTC worth today
Hence, it appears that the presence of both bullish and bearish factors will make it difficult to predict the future of Bitcoin.
A surprise Easter Egg
Despite the prevailing bearish sentiments towards 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 concealed on all Mac devices.
It suggests that some Bitcoin advocates may have made their way onto Apple’s team.
if you’re on a Mac, there’s a copy of the #Bitcoin White Paper hidden on your device.
Type this into terminal:
open /System/Library/Image Capture/Devices/VirtualScanner.app/Contents/Resources/simpledoc.pdf
— McShane (@mcshane_writes) April 5, 2023
