“Major Bitcoin whales have been building their positions over the past two months, while medium-sized wallets have been selling. This deviation in behavior could be a ‘constructive signal’ for BTC in the medium term, according to CryptoQuant [data],” Alex Kuptsikevich, chief market analyst at FxPro, said in an email.
Blockchain research firm Glassnode noted that the market looks much more balanced now than it did a month ago.
“Overall, the market appears increasingly balanced, with long-term conviction providing support while speculative participation remains contained,” it said.
There are also signs of growing participation in BTC futures and options. Recently, a trader (or group of traders) bought large bull call spreads in bitcoin, targeting $72,000 by the end of the month.
In short, the buyer profile currently appears diverse
However, there are still risks. The main headwind in the near term is the issuance of US Treasuries, which could drain liquidity from the system and weigh on risk assets.
“Treasury settlements are expected to result in net new issuance of $56 billion, followed by another $37 billion on Thursday and a smaller coupon settlement of $13 billion on Friday. Treasury issuance is likely to remain heavy until Labor Day, creating headwinds for risk assets as we move through the summer,” Mott Kramer founder Michael Kramer said in a blog post.
