Bitcoin hits $90K again, but why are big holders selling? – Crypto News – Crypto News
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Bitcoin hits $90K again, but why are big holders selling? Bitcoin hits $90K again, but why are big holders selling?

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Bitcoin hits $90K again, but why are big holders selling? – Crypto News

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  • BTC wallet expansion indicated increasing adoption despite recent price fluctuations.
  • A surge of large wallet activity could signal the next big crypto breakout.

The king crypto has once again crossed the $90K barrier, underscoring a roller-coaster March characterized by dramatic price swings.

Amidst the increased volatility, the Bitcoin [BTC] network has witnessed increased wallet activity, offering insight into market sentiment and direction going forward.

On the daily chart, the structure seems bullish, especially after BTC mitigated the $79 fair value gap before the recent surge.

BTC retail investors lead the charge

The number of Bitcoin wallets has grown by 50K in the past month, with retail investors driving much of this expansion.

According to recent data from Santiment, 37,390 more wallets now hold less than 0.1 BTC, while 12,754 more wallets hold between 0.1 and 100 BTC.

Source: X

Interestingly, the growth of BTC’s smaller wallets shows growing interest from retail investors. Historically, this is typically a bullish indicator of Bitcoin’s adoption and long-term value.

Large BTC holders take profits

The narrative isn’t entirely one-sided. While smaller wallets are thriving, the number of large wallets holding at least 100 BTC has dropped by six.

This decline points to profit-taking among major players capitalizing on recent price gains, introducing temporary selling pressure. However, the overall expansion of smaller wallets remains a positive sign for market growth and stability.

If the growth in smaller wallets continues, it could lay the groundwork for sustained bullish momentum in the future. CryptoQuant’s on-chain data indicates that investors are in a “Belief” phase, marked by high unrealized profits.

This suggests market participants are holding onto their BTC, anticipating a potential rally in the near term.

Bitcoin NUPL

Source: CryptoQuant

For a crypto-wide breakout to gain traction, analysts are watching for a resurgence in the number of 100+ BTC wallets.

Growth in this category would signal renewed confidence among institutional and high-net-worth investors, potentially propelling Bitcoin to new highs.

Next: How a falling dollar index [DXY] can push Bitcoin to $100,000

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