“Large Bitcoin whales have been increasing their positions over the past two months, while medium-sized portfolios have been selling. This divergence in behavior could be a ‘constructive signal’ for BTC in the medium term, according to CryptoQuant [data]”said Alex Kuptsikevich, chief market analyst at FxPro, in an email.
Blockchain analytics firm Glassnode noted that the market appears much more balanced now than it did a month ago.
“Overall, the market appears increasingly balanced, with long-term convictions providing support while speculative participation remains contained,” he said.
There are also signs of growing participation in BTC futures and options. Recently, a trader (or group of traders) bought large bullish call spreads on bitcoin, aiming to reach $72,000 by the end of the month.
In short, the buyer profile seems diverse right now.
However, risks remain. The most important obstacle in the short term is the issuance of US Treasury bonds, which could drain liquidity from the system and weigh on risk assets.
“Treasury bill liquidations are expected to result in net new issuance of $56 billion, followed by an additional $37 billion on Thursday and a smaller coupon liquidation of $13 billion on Friday. Treasury bill issuance will likely remain heavy through Labor Day, creating a headwind for risk assets as we move through the summer,” Mott Capital Management founder Michael Kramer said in a blog post.
