Bitcoin Whales Push Apex Crypto To $67K: What Happens Next?
By Benzinga
Bitcoin (CRYPTO: BTC) exchange reserves have plummeted to a multi-year low, signaling growing institutional demand, but elevated price levels may cause short-term profit taking.
What Happened: CryptoQuant data, as reported by The Block, shows that over 51,000 bitcoin have been withdrawn from major cryptocurrency exchanges in the past month alone. This trend has reduced the liquid supply of bitcoin and suggests a long-term holding strategy among investors.
Julio Moreno, CryptoQuant head of research, told The Block, “Bitcoin exchange reserves have declined this year because of Mt. Gox distribution to creditors, as our total exchange reserve data included Mt. Gox reserves, and Coinbase exchange reserve declining, removing the potential sell pressure on bitcoin from these coins.”
The decline in exchange reserves coincides with a surge in bitcoin accumulation by new institutional players. CryptoQuant community analyst J.A. Maartunn told The Block, “The buying pressure from this new accumulation is something we haven’t seen before. New whales are pushing bitcoin prices higher as they buy more. Right now, these new whales hold 1.97 million bitcoin.”
Why It Matters: This bullish sentiment is tempered by potential profit-taking pressure. CoinDesk reports that over 94% of the bitcoin circulating supply is now sitting in profit, which historically has led to increased selling pressure.
The data shows that long-term holders (LTHs) could be the ones taking profits, with Glassnode defining LTHs as those holding coins for at least 155 days. Currently, LTHs hold only 500,000 BTC at a loss, a small fraction of their total 14 million BTC holdings.
Despite potential profit-taking, Bitcoin dominance is making new cycle highs and approaching 60%, a level last seen in April 2021. The apex crypto has shown resilience even as the DXY index climbs above 103.5, a level that previously coincided with significant price drops.
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