Bitcoin (BTC) Gains Significant Corporate Backing in July

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Despite recent market fluctuations, Bitcoin (BTC) received significant backing from large corporate entities throughout July.

At the end of the month, some of the most prominent wallets were held by exchange-traded Funds (ETFs), with MicroStrategy maintaining its position as the third-largest BTC holder.

Corporate involvement in Bitcoin holdings

Corporate involvement in Bitcoin has remained strong, with MicroStrategy (MSTG) continuing to hold the third-largest Bitcoin wallet as of the end of July. This corporate support has been perceived as a stabilizing factor following the recent market crash. The two largest corporate wallets are owned by the iShares Bitcoin Trust (IBIT), a prominent ETF issuer, and Grayscale, which holds more than 241,000 BTC. These wallets have shown significant activity, indicating that balance shifts could occur anytime.

Tesla Inc., Block Inc., and Coinbase have also shown support through their Bitcoin holdings. Meanwhile, the market is observing the potential impact of MicroStrategy’s additional $2 billion Bitcoin allocation. If secured, this funding could elevate MicroStrategy’s holdings beyond Grayscale’s, aiming for a long-term hold. However, raising the $2 billion under current market conditions might take much work. July witnessed a significant accumulation of whale wallets, totalling 84,000 BTC, marking the most significant monthly accumulation since 2014.

Miners’ approach and exchange reserves

Miners are adopting a strategy of holding over two million BTC for months, avoiding excessive selling. Marathon Digital Holdings, one of the top Bitcoin owners, held 17,587 BTC as of May 2024. The total reserves held by miners have expanded to nearly two million coins. Spot exchange reserves available for purchase show a net decrease, with recent inflows failing to reverse the trend. Exchange balances are now down to 2.46 million BTC, signalling a continued low availability for buyers.

The recent correction saw Bitcoin dip below $50,000, just a week after nearing $70,000, raising concerns about whether whale investors will continue their buying spree. The situation recalls the earlier July correction to $53,000 when whales eventually strengthened their positions.

With more than 65% of Bitcoin held for over a year, significant inflows into centralized exchanges like Binance and Kraken have been observed. While some large wallets maintain a bullish stance, others might exert selling pressure, impacting the market in the short term. Notably, unknown whales have shown a tendency towards profit-taking, with 72% selling and 28% buying.

Signs of potential recovery and whale activity

The recent market pressures on Bitcoin include selling by ETFs, smart money divestments, and bot-driven orders. However, aggressive whales have been actively buying, indicating a potential recovery.

A significant indicator of market recovery came from the actions of “Mr. 100,” a known whale wallet that began purchasing at the $53,000 level after the German government sold off BTC. This wallet now holds 71,440 BTC, approaching the holdings of Tether, Inc.

A Bitfinex whale has been buying 450 BTC daily, equating to the entire daily mining reward. These leveraged longs and spot collateral purchases further suggest bullish sentiment.

The market dip has also influenced social media discussions, with increasing mentions of “buy the dip.” Although panic-selling may persist, Bitcoin demonstrated resilience by recovering thousands of dollars in value within an hour.

Shortly after dropping below $50,000, Bitcoin rallied back to $52,995.55, briefly surpassing the $53,000 mark, showcasing its volatility and potential for swift rebounds.

The post Bitcoin (BTC) Gains Significant Corporate Backing in July first appeared on Coinfea.

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