Bitcoin Sees Confident Buying From Smart Money Amid Dip – Details
Bitcoin Sees Confident Buying From Smart Money Amid Dip – Details
Despite a recent price dip where Bitcoin (BTC) fell to around $65,000, shedding over 6% in the last week, smart money investors and long-term holders are reportedly showing confident buying activity. Analytics from Easy On Chain indicate a 'bullish market divergence' where institutional players are accumulating BTC, particularly through OTC markets, even as short-term holders panic. Miner selling has also declined, supporting the accumulation trend, suggesting underlying strength despite short-term market struggles.
Bitcoin's Recent Performance and Smart Money Accumulation
In the past week, Bitcoin (BTC) prices experienced a notable decline, dropping to approximately $65,000 and registering a 6.74% loss. This downturn contributed to a challenging March for the asset, which has seen periods of attempted price breakouts followed by significant pullbacks, resulting in a net monthly loss of 4.4%.
Amidst this price instability, Easy On Chain analytics highlight a contrasting trend: significant accumulation by 'smart money' investors in the Bitcoin market. These include institutional players and ultra-high net worth whales. The month began with a surge driven by traditional finance (TradFi) entities aggressively buying Bitcoin exposure, pushing the Fund Market Premium to 2.72 by March 11.
Market Dynamics and Accumulation Shifts
This robust demand was followed by a strategic market exit as Bitcoin peaked locally at $76,007 on March 17. The temporary dip in demand was evidenced by a high Exchange Whale Ratio of 0.835 and a Stablecoin Supply Ratio (SSR) of 10.95, signaling exhausted buying power. Subsequently, Bitcoin underwent a steady correction to $65,000, causing the Net Unrealized Profit/Loss (NUPL) for short-term holders (STH) to turn negative and induce panic selling.
However, signs of re-accumulation by long-term holders emerged around March 22. While 'Coins Days Destroyed' (CDD) showed movement of older coins, there was no significant increase in exchange inflows. Notably, $2.27 billion in ERC-20 USDT was moved from exchanges, suggesting that whales and institutions were acquiring Bitcoin through the OTC market, bypassing public order books.
Miner Activity and Outlook
Bitcoin miners are also contributing to the underlying accumulation trends. Their selling activity has decreased, with total holdings recorded at 1,805,235 as of March 27. With a substantial profit margin of 71.4% at current market prices, miners are disincentivized from forced selling. At press time, Bitcoin traded at $66,003, reflecting a 4.23% loss in the past day. Easy On Chain analysts identify $63,200 as a critical 'life line.' A bullish reversal is contingent on a revival in US spot demand, indicated by positive Coinbase and Fund Premiums.