[Analysis] "Bitcoin, Investor Wait-and-See Stance Continues…Private Investor Influx Needed"

Uk Jin

Summary

Recently, Bitcoin has struggled to break through $110,000, and opinions have been raised that individual investor participation is necessary for further price increases.
A $1 billion stablecoin outflow from Binance has occurred, deteriorating market liquidity and signifying that investors continue to take a wait-and-see approach.
With long-term holders holding back on investments and whale investors reducing their holdings, it was noted that the influx of individual investors is key to Bitcoin’s upward trend.

Recently, Bitcoin (BTC) has been struggling to surpass the $110,000 mark, and there is an opinion that participation from individual investors is needed for Bitcoin to maintain its upward momentum.

On the 2nd (Korean time), Amr Taha, a contributor at CryptoQuant, stated in a report, "Recent on-chain data from the Bitcoin market shows signs of significant changes."

Specifically, Taha pointed out the following as key data: ▲Large-scale stablecoin outflows from Binance, ▲Declining interest from long-term holders, ▲Contrasting investment strategies between individual and whale investors.

First, Taha emphasized, "Over the past month, about $1 billion worth of stablecoins have flowed out from Binance," adding, "the massive outflow of stablecoins from exchanges indicates deteriorating market liquidity and a wait-and-see stance among investors."

He continued, "Net realized capital of long-term holders has also sharply decreased from $28 billion at the beginning of this year to $2 billion in May," explaining, "this suggests that long-term holders are refraining from investing in Bitcoin and reflects a weakening confidence in the market."

Lastly, Taha explained, "While Bitcoin was rising toward $110,000, whale investors reduced their holdings, while small individual investors tended to increase their holdings as the price climbed. At this point, support from individual investors is needed for Bitcoin to sustain its upward momentum."

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