Key Insights
Bitcoin has entered a consolidation phase after reaching $90k.
Experts highlight the role of miners-led selling in preventing further rallies.
The consolidation phase could end soon as institutions like MicroStrategy have started buying.
Derivatives data indicate high rate of market participation after Bitcoin touched $92k.
After a fortnight of high performance, Bitcoin seems to have taken a break at the $90k level. The crypto rallied from $67k to $92k within a fortnight from 05 November to 19 November, gaining around 37% and helping the markets reach a valuation of $3 trillion.
Bitcoin's Growth in the Last 30 Days
CoinMarketCap
Unlike the previous instances where an ATH was immediately followed by a correction of 10%, in the current situation there was hardly a correction of $2000 (from $92k to $90k). At press time, the price of Bitcoin has again crossed $9k.
In the last two days, miners have sold at least 3000 Bitcoins worth over $273 million.
Various estimates suggest that Bitcoin miners are producing BTC at $45,000 per coin, with some (those with low efficiency) going as high as $70,000.
Miners currently hold around 2 million Bitcoins, down from 2.2 million BTC in April 2024.
Since the estimates on Bitcoin prices indicate that it could soon move ahead of $100k, the chances of more miners selling BTC at this price seem low.
Further, as institutions start buying Bitcoin, we might see them pushing higher prices.
Several top institutional players, including Michael Saylor's MicroStrategy, Metaplanet and a few others, have already started buying Bitcoin.
MicroStrategy recently bought $2 billion worth of Bitcoins. Within a week of this purchase, the company bought an additional $4.6 billion worth of BTC at an average price of $88k.
Reportedly, the company has already offered its convertible bonds to large private investors in an attempt to raise a further $1.75 billion to buy Bitcoins.
So far, the company has already reached a valuation of $75 billion based on its 330k BTC reserves.
Metaplanet has emerged as a new large institutional player in Bitcoin markets, working on the same strategy as Michael Saylor. The company recently stated that it wants to raise $11.3 million in debt to finance its Bitcoin purchases.
Last week, Bitcoin ETFs saw one of the largest inflows ever, around $2 billion since launch. Even on the intense profit booking days, the outflows were around one-sixth of the inflows.
Bitcoin ETF Inflows in the Last 2 Weeks
Coinglass
A week before that, Bitcoin ETFs saw another $1.36 billion inflow in a single day on 07 November. These inflows have kept Bitcoin's price stable despite selling from BTC miners.
Controversial social media influencer Andrew Tate has announced that he will buy Bitcoins, following in the footsteps of MicroStrategy Chairman Michael Saylor. He plans to purchase $1 million worth of BTC everytime Microstrategy buys Bitcoins.
Tate is estimated to have a net worth of $710 million and has endorsed Bitcoin in the past.
By the time Bitcoin had reached $92k from $67k, Bitcoin Option's open interest had reached a record figure of $97 billion. The high volume of OI in the derivative market suggests that people are highly bullish in Bitcoin and are actively participating in the markets.
Further, Bitcoin's PUT/CALL ratio is 0.56, indicating that there is much more room for Bitcoin to grow. Typically, this ratio is less than 1 for undervalued markets and greater than 1 for overbought markets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.