In the past 30 days, Bitcoin has witnessed notable shifts in ownership patterns, particularly among custodial wallets categorized as permanent holders, which have accumulated 85,000 BTC.
These entities, distinct from ETFs, exchanges, or miners, have shown a steadfast commitment with no outflows recorded. Conversely, ETF holdings saw a net outflow of 16,000 BTC during the same period, indicating varying strategies among different investor groups.
Permanent holders, mostly custodial wallets with no outflows, accumulated 85K #Bitcoin in the last 30 days.
These wallets are neither ETFs, exchanges, nor miners. During the same period, 16K BTC flowed out of ETF holdings.
While some panic sell, "the others" are buying. pic.twitter.com/t9oN6pVwST
— Ki Young Ju (@ki_young_ju) July 10, 2024
Amid fluctuating market conditions, characterized by sporadic panic selling, there remains a resilient segment of investors actively accumulating Bitcoin. This behavior contrasts with historical cycles, as the current market phase has yet to experience a prolonged squeeze, whether short or long.
The ratio of long/short squeezes, which measures hourly liquidation volume against total taker volume, serves as a potential indicator for cascade liquidation events. This metric underscores the cautious sentiment prevalent among traders, poised to react swiftly to market dynamics.
Throughout this year, Bitcoin has encountered two short squeezes around the $66,000 mark, while the previous cycle saw four long squeezes affecting prices at $55,000. These instances highlight the volatility inherent in Bitcoin trading and its susceptibility to rapid price movements under certain conditions.
This cycle hasn't had a long squeeze yet.
Long/short squeeze ratio can indicate a cascade liquidation event when high. (= hourly liquidation vol / total taker vol)
This year, #Bitcoin had two short squeezes at $66K. In the last cycle, there were four long squeezes at $55K. pic.twitter.com/bDtaTLphRl
— Ki Young Ju (@ki_young_ju) July 9, 2024
Government actions also play a significant role in market sentiment. The US government’s modest BTC holdings, comprising approximately 0.01% of the circulating supply, hold symbolic importance given Bitcoin’s market size.
The US government's BTC holdings represent about 0.01% of the total circulating supply. While this may seem small, it is significant given Bitcoin's total market size and the potential impact on market sentiment.
Explore @intotheblock and know more.https://t.co/sv48vngMxY pic.twitter.com/icUjvSdvno— 🍞ℤ𝕐ℝ𝔼 (@lord_zyre) July 9, 2024
Meanwhile, recent reports indicate substantial Bitcoin movements by the German government, including a transfer of $5,103 BTC ($300 million) today alone, contributing to total transactions potentially exceeding $500 million in the past 24 hours.
[Update] 25 minutes ago, the German Government transferred out another $5,103 $BTC ($300M) again.
In the past 24 hours, the German government might have sold up to $500M worth of $BTC, including:
– moving out 11,410 $BTC ($662M) at ~$58,002.
– receiving back 2,810 $BTC ($162M)… pic.twitter.com/c0LBQrmeLu— Spot On Chain (@spotonchain) July 10, 2024
Bitcoin ETFs Saw Notable Net Inflow Of $216 Million
Regarding institutional investment, Bitcoin ETFs saw a notable net inflow of $216 million on July 9, 2024, marking the third consecutive day of positive inflows. Notably, BlackRock led with a significant $121 million inflow, contrasting with Grayscale’s outflow of $37.5 million following a single day of inflows.
🚨 $BTC #ETF Net Inflow July 9, 2024: +$216M!
• The net inflow has been positive for 3 consecutive trading days (all with high inflows). 🎉
• #BlackRock (IBIT) continued leading the leaderboard with another large inflow of $121M.
• #Grayscale (GBTC), however, saw an outflow… pic.twitter.com/nxCeYGacJt
— Spot On Chain (@spotonchain) July 10, 2024
These developments underscore ongoing shifts in institutional sentiment and strategic positioning within the Bitcoin market, influencing price dynamics and investor behavior moving forward.
The German government further moved 750 $BTC ($44M) to wallet "139Po" (likely B2C2 Group) as part of an OTC.
In total, the German government moved out 5,853 $BTC ($344M) in the past hour and still has 18,110 $BTC ($1.06B) left.
More details about their latest transfers can be… pic.twitter.com/FuZITph1aR
— Spot On Chain (@spotonchain) July 10, 2024
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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