Bitcoin Retail Investors Are Dumping Amid Jump To $67,000, Why This Is Good For Price
May 20 2024 - 11:00AM
NEWSBTC
The Bitcoin price recovery above the $67,000 level has triggered a
round of selling, but it is not from the usual camp of large
investors selling. This time around, it is the small-time traders
who are offloading their bags and putting selling pressure on the
price. However, this is not an entirely bad thing given that,
historically, such selling has been bullish for the Bitcoin price.
Bitcoin Retail Are Dumping Their Bags In a report on X (formerly
Twitter), the on-chain data tracker Santiment revealed an
interesting trend among small-time Bitcoin investors. As the price
of Bitcoin rallied past $67,000 over the weekend, these small
wallets took this as the time to sell and secure profit. Related
Reading: Cardano Whales Return To The Table, Increase Massive
Holdings By 10% These wallets are those holding below 0.1 BTC on
their balances. This means that at the high end, these wallets are
holding an average of $6,000. In the space of one week, Santiment
notes that their collective holdings had dropped 0.46%. 🐟👋 #Bitcoin
is dancing just above $66.1K as small traders continue to
#liquidate their holdings despite the #crypto bounce over the past
week. Historically, small wallets dumping their coins to larger
wallets is an encouraging and #bullish sign for $BTC.
https://t.co/wlz4XPhfMD pic.twitter.com/dTJAy5G6pL — Santiment
(@santimentfeed) May 19, 2024 Selling among smaller wallets is not
new, but at this level, it could have a significant impact on the
price. However, compared to when whale and sharks sell their BTC
holdings, retail investors selling is usually bullish for the
price. This is because as the smaller traders sell, the BTC is
picked up by the larger traders, who are usually longer-term
holdings. As blockchain agency Crynet explains in a response to
Santiment: “While small traders divesting might seem concerning,
it’s often a bullish signal. Historically, this redistribution to
larger holders indicates stronger hands in the market. Let’s see
how this plays out.” Bullish Sentiment Rises Among Investors The
selling by small Bitcoin traders comes amid a jump in bullishness.
As Santiment reported in a previous post, bullishness among Bitcoin
investors has now jumped to a 4-month high. The last time that
investors were this bullish was back in January 2024 when the price
of BTC had jumped above $45,000. Related Reading: Crypto Analysts
Reveal Sub-$1 Altcoins Set To Outperform In The Bull Run Bitcoin’s
weighted sentiment is now sitting at a value of 0.99, and although
this is still lower than its January high of almost 1.8, it remains
one of the highest among large caps. Currently, only the Chainlink
(LINK) weighted sentiment is higher after rising to a new one-year
high of 1.829. 🥳 The crowd’s sentiment has shifted toward #Bitcoin
after the surprise bounce above $66K Wednesday (and now above
$67.2K). Additionally, #Chainlink is seeing its most #bullish
sentiment in over a year. #FOMO staying low will help these rises
continue. https://t.co/TcEPBdS9Oh pic.twitter.com/czvE1mOgId —
Santiment (@santimentfeed) May 17, 2024 The Ethereum weighted
sentiment is currently sitting at a low -0.44, while XRP and
Binance’s BNB are sitting at around -0.37. This suggests that
bearishness continues to dominate among these assets while crypto
investors look to Bitcoin to lead the market. At the time of
writing, the BTC price is still trading at a high price of $66,900.
The largest cryptocurrency by market cap is seeing a 6.78% increase
in the last week and a small decline of 0.5% in the last day,
according to data from Coinmarketcap. Featured image created using
Dall.E, chart from Tradingview.com
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