Bitcoin Price Analysis: BTC Clings To $100,000 As OG Whales Put Recovery At Risk
Bitcoin (BTC) is marginally down over the past 24 hours, clinging to the $100,000 mark. The flagship cryptocurrency is currently trading around $101,780 as it struggles to build momentum.
OG Bitcoin whales have hindered recovery momentum, cashing out millions and stalling price recovery.
JPMorgan Discloses 64% Increase in BlackRock Holdings
JPMorgan Chase has disclosed that it owns 5.28 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) ETF as of September 30, a 64% increase since June. According to JPMorgan’s New York-based fintech arm’s latest 13F-HR Institutional Investment Manager holdings report, the firm owns IBIT shares worth $343 million. The report can be viewed on the United States Securities and Exchange Commission (SEC) website. Spot Bitcoin ETFs secured approval in January 2024, marking a watershed moment for Bitcoin and the broader cryptocurrency ecosystem.
Spot Bitcoin ETFs, primarily IBIT, are widely regarded as an important gateway for institutional investors to gain exposure to the cryptocurrency market. Bitcoin ETFs offer investors access to the asset without requiring direct ownership. Unlike futures ETFs, spot Bitcoin ETFs represent direct asset buys.
All 12 Bitcoin ETFs Register Substantial Outflows
U.S.-listed Bitcoin ETFs recorded substantial outflows totalling $558 million on November 7, the largest single-day withdrawals since their launch. Fidelity’s FBTC registered the largest outflows with $256 million, followed by ARKB with $144 million and BlackRock’s IBIT with $131.43 million. The outflows come after the ETFs recorded a $240 million inflow on November 6. Total net assets under management as of November 7 were $138.08 billion.
Meanwhile, Grayscale’s GBTC registered $15.44 million in outflows, while Bitwise’s BITB saw outflows of over $10 million. Additionally, eight Bitcoin ETFs, including VanEck’s HODL, Grayscale’s BTC, Invesco’s BTCO, Valkyrie’s BRRR, Franklin’s EZBC, WisdomTree’s BTCW, and Hashdex’s DEFI, reported zero activity. The outflows on November 7 were the second-largest single-day withdrawal in recent memory. The largest outflows were seen on November 4, when spot Bitcoin ETFs reported over $577 million in outflows. The total value added across spot Bitcoin ETFs crossed $5 billion on November 7, with BlackRock’s IBIT maintaining the highest cumulative net inflow at $64.32 billion.
Crypto Treasuries Take Massive Hit
Analysts have warned that digital asset treasuries are under immense pressure as the month-long cryptocurrency market downturn erased billions from their balance sheet. An analysis by on-chain analytics firm CryptoQuant revealed the stress digital asset treasury companies are under. The analysis took Evernorth, an XRP-focused treasury company, as an example. According to CryptoQuant, the firm is sitting on $78 million in unrealized losses just weeks after acquiring XRP. The analysis warns that even established firms like MSTR have been hit hard.
Strategy has reported a 26% drop over the past month as Bitcoin continued its decline. The stock is trading over 50% below its all-time high, according to data from Google Finance. However, the company is still in positive territory on its Bitcoin reserves, thanks to an average cost basis of around $74,000 per coin.
Crypto Treasury Boom Has Peaked: Michael Novogratz
Galaxy Digital CEO Mike Novogratz believes the hype around crypto treasury companies has likely peaked. Novogratz believes the focus has shifted to which existing companies can scale and dominate the ecosystem.
“We’ve probably gone through peak treasury company issuance.”
According to Novogratz, the crypto treasury boom was fueled by favorable crypto regulations. As a result, treasury firms including Strategy, GameStop, SharpLink, and Trump Media began allocating reserves to Bitcoin, Ethereum, and other digital assets. Novogratz warned that the growing competition and saturation could make it difficult for newer players to gain traction.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is marginally down during the ongoing session, trading around $101,966. The flagship cryptocurrency registered a notable recovery on Friday, rising from a low of $99,170 to settle at $103,284. However, bearish sentiment has returned over the weekend, with the price falling to a low of $101,372 before moving to its current level.
According to Charles Edwards, co-founder of Capriole Investments, Bitcoin “super whales” are cashing out of their Bitcoin, raising concerns about the impact on price recovery. While most analysts view BTC’s decline as a normal correction, some argue the correction is being fueled by selling from long-term holders. Additional data from Glassnode reveals that events where the whales have been spending more than 1,000 BTC per hour have been persistent since January.
“The key distinction in this cycle is that these OG whale high-spending events occurred more frequently throughout, signalling persistent distribution.”
However, despite the selling pressure, markets have shown tremendous resilience.
BTC started the previous weekend on a bullish note, rising 0.84% on Friday and 0.56% on Saturday to settle at $111,666. Bullish sentiment intensified on Sunday as the flagship cryptocurrency rose nearly 3% to cross $114,000 and settle at $114,548. BTC reached an intraday high of $116,410 on Monday. However, it lost momentum after reaching this level and settled at $114,087, ultimately dropping 0.40%. Selling pressure and volatility persisted on Tuesday as the price fell 1.03% to $112,906. Bearish sentiment intensified on Wednesday as BTC fell 2.55% and settled at $110.032. Volatility and selling pressure persisted on Thursday as BTC reached an intraday high of $111,629, fell to an intraday low of $106,279, and settled at $108,308. Despite the overwhelming selling pressure, BTC returned to positive territory on Friday, rising 1.15% and settling at $108,555.
Source: TradingView
Price action remained positive over the weekend, with BTC increasing 0.45% on Saturday and 0.44% on Sunday to settle at $110,536. Bearish sentiment intensified on Monday as BTC fell nearly 4% and settled at $106,557. Selling pressure intensified on Tuesday as the flagship cryptocurrency slipped below $100,000, falling to a low of $98,892 before settling at $101,468. BTC recovered on Wednesday, rising over 2% and settling at $103,869 despite selling pressure. BTC returned to bearish territory on Thursday, dropping 2.48% to a low of $100,235 before settling at $101,290. The price fell to an intraday low of $99,170 on Friday before recovering to reclaim $100,000 and settling at $103,284. Price action flipped to bearish over the weekend, with BTC falling 0.97% on Saturday and 0.62% during the ongoing session.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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