Bitcoin Whales Buy the Dip Leaving Retail Investors

Coin World reported:
Bitcoin whales accumulated a large amount of BTC during market fluctuations, leading to significant selling pressure on cryptocurrencies due to declining miner income.
The recent price crash of Bitcoin (BTC) has shocked the entire cryptocurrency market. However, despite significant losses suffered by many market bulls, some addresses have still profited from the recent adjustment in cryptocurrencies.
Whale dipping
Wallets holding over 10,000 Bitcoins were the main beneficiaries of the recent market fluctuations. These large addresses are believed to be mainly owned by exchange liquidity providers, who have significantly increased their stakes in the past six weeks. It is estimated that these addresses have accumulated an additional 212,450 Bitcoins, accounting for 1.05% of the total Bitcoin supply.
The actions of these large wallets can be seen as a sign of confidence in the long-term potential of Bitcoin. This positive sentiment may attract other investors to enter the market, further driving up prices. If there is no additional selling pressure, this could also help BTC recover to previous levels and potentially reach the $60,000 mark.
However, this is a double-edged sword. If whales continue to accumulate large amounts of BTC, it may impact the decentralization of BTC. These whale addresses will have significant power and may manipulate the BTC price according to their behavior. This could make retail investors vulnerable, especially when these whales decide to sell their holdings.
Another worrying factor is that retail investors have not shown the same enthusiasm as whales.
Analysis of Santiment data by AMBCrypto shows that there has been no interest in purchasing BTC among the retail addresses in the 0.1 BTC to 1 BTC group. If this continues in the long term, it may contribute to centralization, allowing retail investors to be at the mercy of whale addresses.
What about the miners?
While the interest of whales may temporarily boost the price of Bitcoin, struggling miners may exacerbate selling pressure. In recent days, daily miner income has significantly decreased, highlighting their financial pressure. The decline in income may motivate miners to sell their BTC holdings to cover operating costs, thereby putting downward pressure on the price.
As of the time of writing, the trading price of BTC is $56,741.70, with a 2.8% increase in the past 24 hours. Despite the lukewarm recovery, cryptocurrency trading volume has declined by over 37% during the aforementioned period.
If this continues for the next week or so, it will be difficult for BTC to break through the $60,000 mark on the chart.