After the approval of spot Bitcoin ETFs in the US last week, Bitcoin’s price experienced a decline, stabilizing around $42,000 in recent days. The price had surged to $49,000 during the ETF approval but was followed by increased selling pressure.
Santiment, a chain data provider, revealed that large Bitcoin wallet addresses have been actively moving older BTCs, leading to a significant decrease in the average age of BTCs held in these wallets. This could potentially pause the ongoing downtrend in the crypto market, although the movement of old BTCs is generally seen as negative for the cryptocurrency.
Santiment also suggested that actions by several crypto whales could potentially trigger another rally, possibly testing levels around $45,000 or even reaching $50,000 again. Meanwhile, option data provided by Greeks.Live indicates a focus on the impact of spot ETF trading on crypto prices, with an unusual volume of large sell options traded today.
Notable trends include a prevalence of short-term put options in individual block trades exceeding five million dollars, and smaller orders showing a tendency to buy short-term put options. Despite logical concerns surrounding the market’s current state, there’s a growing belief among large traders that the market may have found stability.
While the immediate impact of the spot Bitcoin ETF approval has not been evident, many market analysts believe its long-term effects will be significant. Crypto investors are closely following Michael van de Poppe, who emphasized the long-term importance of the spot Bitcoin ETF, predicting a “mega bull event” in the coming years.