Bitcoin’s Attraction Wanes as Short-Term Investors Retreat
Data from CryptoQuant reveals a potential wane in Bitcoin’s appeal. Short-term investor wallets have dropped since late May. Currently, they hold around 4.5 million BTC, down from 5.3 million in May.
This 15.1% decline in less than a month shows fewer new buyers. Short-term holders are those who bought Bitcoin recently. In a bull market, more of these investors usually means an increase in price. However, a decrease suggests a cooling market.
CryptoQuant reports that demand momentum is at an all-time low, down by 2 million BTC. New Bitcoin buyers are active, but at a slower pace than before.
Institutional interest, including whales, is also cooling. The accumulation rate has slowed down.U.S. Bitcoin ETFs daily purchases have dropped from 9,700 BTC in April to 3,300 BTC.
Futures traders are becoming cautious. Many took profits when Bitcoin hit $110K last week and now short more as the price drops towards $105K. Yet, some institutions remain bullish.
BlackRock added $1.4 billion worth of Bitcoin this week, increasing its holdings to 670,295 BTC. Strategy added 10,100 BTC, spending $1.05 billion. Both see long-term potential in Bitcoin.
Despite these ups and downs, Bitcoin’s price has stayed between $100,000 and $110,000. It is currently at $106,000, up 2.4% from this week’s lowest point.
