Recently, there has been a significant shift in Bitcoin ownership, with institutional players increasingly accumulating BTC while retail investors are offloading their assets.
Changes in Bitcoin Ownership
Over the past year, institutional players have begun accumulating Bitcoin, particularly following the approval of spot ETFs in January 2024. Meanwhile, many retail investors, enticed by short-term gains or scared by volatility, are selling off their assets. Notably, they are selling their BTC to the very same institutions that previously doubted Bitcoin but now see it as a long-term store of value.
Discussion on Bitcoin Price Levels
Analysis suggests that institutional demand for BTC has increased since the beginning of the second quarter, while retail demand has significantly decreased. Bitcoin prices, despite reaching new all-time highs, have since fallen, indicating that institutional purchases may be driving the current BTC uptrend. The Mayer Multiple suggests that Bitcoin's price is still undervalued even at levels of $108K.
Inactive Wallet Activation and Its Consequences
Recently, a unique event occurred in the crypto space where previously inactive wallets became active after 14 years. Some of the transferred Bitcoin was reportedly sold, creating bearish pressure on the price. However, users are keenly observing prices, as volume surges and demand could lead to significant changes in the future. Data indicates that over 80,000 BTC that remained inactive for more than 5 years are now on the move.
With the growing interest from institutional investors, retail traders should reflect on the long-term implications of selling. Holding Bitcoin can help preserve financial sovereignty and prepare for future asset value growth.