Crypto News

Bitcoin’s Path to Recovery: New Investors Needed Amid ETF Volatility And Whale Activity Surge

Bitcoin is facing a slow inflow of new investors, as short-term holders (STH) now make up only 30% of its realized capitalization—a significant decline from nearly 80% during the last bull market.

To reignite interest, substantial price moves or major headlines, like large-scale Bitcoin acquisitions by big companies, could be essential to draw attention back to the cryptocurrency.

Sentiment indicators, however, reflect uncertainty. Bitcoin’s negative funding rate and high open interest suggest declining bullish sentiment, pointing to potential volatility.

The presence of significant short positions on exchanges such as OKX, Bybit, and Huobi raises the possibility of a short squeeze, which could trigger a sudden price movement.

Following the recent U.S. presidential election, whale activity around Bitcoin spiked, with large transaction volume reaching $90 billion on Wednesday. This surge highlights a substantial uptick in transactions by large holders, signaling that major investors are repositioning in response to market developments.

Bitcoin And Ethereum Spot ETFs Volatile Behaviour 

Bitcoin and Ethereum spot ETFs also experienced a volatile week amid election outcomes and President Trump’s victory. Inflows and outflows fluctuated sharply between November 4 and November 8, indicating both opportunities and caution among investors. Bitcoin ETFs recorded the second-largest outflow on November 4 and the highest-ever inflow on November 7. Meanwhile, Ethereum ETFs saw the seventh-largest outflow on November 4, followed by the third- and fourth-largest inflows on November 7 and 8, respectively.

Institutional interest remains high, particularly from BlackRock (IBIT), which added 16,254 BTC (around $1.25 billion) this week, bringing its holdings to an impressive 449,967 BTC—now valued higher than its gold reserves at $34.4 billion.

With whale activity increasing and institutional players deepening their positions, Bitcoin’s market could be gearing up for a pivotal moment. The next steps will likely hinge on whether fresh retail interest joins the fray.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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