CryptoQuant.com2023-05-17

Decoding Bitcoin's Recent Correction: How Miners and Whales Cashing Out

The latest Bitcoin price dip followed Long-Term Holders (LTHs) capitalizing on the year's highest profit ratio, over 34%. Furthermore, on a broader scale, all market players managed to realize profits exceeding 7% on average. This downturn is also influenced by whales taking the lead in depositing Bitcoin into exchanges, as evidenced by the early May surge in the Exchange Whale Ratio. Without a doubt, Bitcoin transactions by these whales escalated to fairly high levels, with transfers involving more than 40% of the coins. Simultaneously, daily miner wallet outflows reached near-record highs, contributing to the selling pressure during this adjustment period. While miners' impact on price movements is lessening, understanding their actions remains essential given their considerable Bitcoin holdings. As it stands, miners possess more than 9% of Bitcoin's total supply, inclusive of Satoshi's coins. Investors who have held Bitcoin for 1 to 3 months show a significant support level in their cost basis ($26.5K), indicating that this was a key point during the recent price correction.