Kentucky Governor Signs’ Bitcoin Rights’ Bill into Law
Oklahoma's State House of Representatives approved the Strategic BTC Reserve Act, moving the state closer to establishing a BTC reserve.
While the market is in a downturn, with many expecting the bear run to last for many more months, fresh data reveals that the next stage of mass Bitcoin purchasing might have already started.
According to data from one of the analysts at on-chain research firm Glassnode, Checkmate, Bitcoin buyers, both small and large-scale, are in buy-mode around $20,000 USD and are stacking their wallets while Bitcoin sits at a lower value than it has for the past seven months.
While a Bitcoin sell-off has been on the news with the leading cryptocurrency falling and struggling to regain a higher value, it might not be the market capitulation that it seems. Long-term holders are falling into the “selling” camp for the first time in a few months, but selling is not the only current state of the market.
Looking at data from Glassnode, Checkmate noted that the smallest players (called “shrimps”) and the largest players (the whales) are investing, whereas the middle wealth (the “crabs” and the “sharks” are not adding to their portfolios.
Whales with 1k+ $BTC are going HAM.
Alongside the Shrimp and Crabs, this looks like the perfect mid-wit meme.
Shrimp = stackers
Middle wealth = scared and margin called
Whales = stackers pic.twitter.com/zyakmicxGG— _Checkɱate ????⚡???????? (@_Checkmatey_) June 29, 2022
According to Glassnode’s data, the smaller and larger players are not only adding to their wallets, but they’re also doing it with an intensity not seen since Bitcoin first hit the $20,000 USD price range (seen back in 2017). In his analysis, Checkmate noted:
“Shrimp are adding to the $BTC balance at the greatest rate since the 2017 ATH. Same price, different trend direction. I do not underestimate the smarts not conviction of the little guy in Bitcoin.”
In the middle, the mid-wealth group – those with a net worth of between 10 and 1,000 Bitcoin in their wallets, are wary of making changes to their profiles and are not adding to their accounts. Looking at the data overall, this group might make up the majority of holders in the market, but the overall trend currently is that Bitcoin buying is increasing. As per Checkmate:
“Balances are increasing, but nothing special. Given the TradFi and crypto shitshow –> I suspect these guys are heavily affected by deleveraging, and margin calls.”
Is the market that bearish?
CEO of CryptoQuant, another analytics firm, Ki Young Ju also noted that the bear market might not be as bearish as people think. In a tweet, he noted that there is still a massive amount of capital in the market, which will drive prices up at some point:
Stablecoins sitting in exchanges are now worth half of #Bitcoin reserve.
We have $25B loaded bullets which can make crypto asset prices go up. The question is when, not how. pic.twitter.com/SQ0ZvBnAMt
— Ki Young Ju (@ki_young_ju) June 30, 2022