The latest on-chain analytics from data providers suggest that smaller addresses owning less than 1 BTC are at an all-time high.
Analytics from on-chain data provider Glassnode have revealed that smaller addresses holding 0.1 to 1 Bitcoin have surged since March 2020 when markets dumped.
However, it expressed caution that the bull market could be entering its latter stages, as indicated by other on-chain metrics.
#Bitcoin on-chain indicators suggest conditions are similar to the second half or later stages of a bull market
This week we analyse:
– Accumulation dynamics
– HODLer Strength
– BTC Wealth Transfer cycles
Read more of our analysis in The Week On-chain👇https://t.co/JBMUHRb2Bo
— glassnode (@glassnode) March 22, 2021
Sat Stacking Up, Whales Down
The data provider defines ‘Sat Stackers’ as wallets that hold less than one Bitcoin. These have been on the rise for the past three years, having accumulated a further 1.23% of the entire supply during the period.
These small accounts now hold an estimated 5.2% of the entire mined supply of BTC, which is currently 18.66 million. Glassnode summarized that the persistent accumulation of small holders demonstrates a willingness to HODL through volatility with the trend unbroken from mid-2018 through the chaos of 2020.
Comparatively, whale wallets holding over 100 BTC have expanded by less than 1% over the past 12 months and have been relatively flat over the past three years. They do, however, hold the majority of BTC out there with 62.6% of the total supply.
This wealth transfer could be a sign that the bull market is entering its latter stages, the analytics provider concluded. However, Vailshire Capital Management founder and CEO, Dr. Jeff Ross, drew an opposing conclusion from the research:
“The incentive for long-term hodlers to sell is still relatively low when compared to past bull markets. This metric suggests the current bull market still has a long way to run… esp. in terms of price increases.”
Bitcoin Correction Deepens
At the time of press, Bitcoin was trading down 7% on the day at $53,700, according to Tradingview.com. Its third major correction in this rally appears to be accelerating as the asset failed to break the $60K barrier over the weekend.
At current prices, BTC has corrected almost 11%, which is nowhere near the levels of previous corrections, which dropped prices by 31% and 26% from their respective highs.
As reported by CryptoPotato, a pullback of similar magnitude from its recent high of $60,100 would put prices in the $42,000 region.
Support at $54K appears to be on the verge of breaking at the moment, so the next level to watch for is around $51,200.
Billionaire Mark Cuban Identifies Altcoin With ‘Most Upside’ As Bitcoin Blasts Above $60,000
As Bitcoin shoots above $60,000, business magnate Mark Cuban says one altcoin stands above the rest in terms of investment potential.
In a new interview with CNBC Make It, the billionaire says that Ethereum (ETH) is the best crypto prospect on the market.
“As an investment, I think Ethereum has the most upside.”
Cuban, who previously stated that smart contracts on Ethereum’s blockchain have revolutionized the cryptocurrency market, believes that the second-largest crypto by market cap is the digital asset which most resembles legal tender.
“I wish I had bought [Ethereum] sooner. I think it’s the closest thing we have to a true currency.”
Cuban went on to reiterate his position that Bitcoin (BTC) is superior to gold because not only is its supply scarce, but it’s easier to transfer, store, trade, and fractionalize. That sentiment is shared by fellow billionaire CEO Chamath Palihapitiya of Social Capital and Virgin Galactic.
Cuban’s comments come on the heels of him saying that customers prefer making payments in Dogecoin (DOGE) rather than BTC at his venues because Bitcoin tends to be a highly appreciable asset.
Ethereum is exchanging hands at $3,839 at time of writing, an 11% increase from its seven-day low of $3,431, according to CoinGecko.
ProShares Set for Bitcoin Futures ETF Launch on Monday After Apparent SEC Approval
The US Securities and Exchange Commission has reportedly greenlit the country’s first Bitcoin futures exchange-traded fund (ETF).
ProShares, an ETF provider, filed a post-effective amendment prospectus on Friday that states the company plans to launch the BTC Futures ETF on Monday, a sign that the SEC has approved the product.
The fund doesn’t invest directly in Bitcoin, but it provides price exposure to Bitcoin futures contracts, a first in the US.
Both Bloomberg and CNBC, citing people “familiar with the matter,” reported earlier in the week that the SEC planned to approve BTC futures ETFs from ProShares and the independent investment firm Invesco Ltd.
Invesco’s ETF is also set to provide exposure to a collection of exchange-traded products (ETPs) and private investment trusts that hold Bitcoin, rather than direct investments in BTC itself.
Last month, SEC Chairman Gary Gensler said he was open to ETFs for Bitcoin futures, noting that they are filed under mutual fund guidelines which provide “significant investor protections.”
Bitcoin is trading at $61,549.38 at time of writing and is up 6.6% in the past day and more than 40% in the past two weeks, according to CoinGecko.
BTC hit its all-time high of $64,804.72 in mid-April.
Bitcoin May See Real Peak If ETF Is Approved and I May Cash Out Half My ETH: CNBC’s Jim Cramer
Jim Cramer shares a common view that Bitcoin has the opportunity to reach a short-term peak or even a real peak if Bitcoin ETFs are approved next week.
Host of CNBC’s Mad Money, Jim Cramer, has talked to Andrew Sorkin from CNBC’s Squawk Box show about the prospects of the Bitcoin price if or when four Bitcoin futures ETFs get the SEC’s approval next week.
Cramer also stated that he may cash out half of his Ethereum stash.
SEC approval for ETF may push Bitcoin up, Cramer says
Answering Sorkin’s question, Cramer stated that a lot of people believe there is a high chance that the senior cryptocurrency, Bitcoin, may hit a short-term or even a real price peak if four BTC-based ETFs are approved by the SEC next week.
He corrected the host and said that the regulatory agency may approve not just one but four Bitcoin futures ETFs next week.
However, he stated that people are running ahead of a possible ETF approval.
"There's a possibility a lot of people feel that you can get a short-term peak, or maybe a real peak as people just run ahead of the ETFs," says @jimcramer on a #Bitcoin ETF approval. "I might cash out half my $ETH." pic.twitter.com/48MJP047yK— Squawk Box (@SquawkCNBC) October 15, 2021
Bitcoin spikes to $59,500 as chance for ETF approval emerges
Earlier today, the flagship digital currency, Bitcoin, soared to a multi-month high of $59,500 on the Bitstamp exchange. It happened after Bloomberg released a report, saying that so far the Securities and Exchange Commission has not objected to approving multiple Bitcoin futures ETFs that were submitted to it earlier this year.
The Bloomberg article stated that the information had been confirmed by multiple sources close to the SEC and to the matter in question.
The media giant’s ETF analyst, Eric Balchunas, believes that the likelihood of Bitcoin ETFs getting the green light has now risen to more than 90%. Still, he is not ready to “close the case” yet.