After the approval of spot Bitcoin ETFs in the US last week, the price of Bitcoin (BTC) fell, and the largest cryptocurrency has been following a quiet trend around the $42,000 level for the past few days. Bitcoin had risen to $49,000 during the ETF approval but was followed by a period of increased selling pressure.
Large Bitcoin Wallet Addresses Are Moving Old BTC
On-chain data provider Santiment, in a big reveal, revealed a sort of significant trend following the approval of the spot Bitcoin ETF last Wednesday. According to Santiment, large Bitcoin wallet addresses are actively and rapidly moving old BTC. Resultantly, there has been kind of a significant decrease in the kind of average age of BTCs in wallet addresses.
There are some really sort of indicators that the movement of old BTC may have kind of temporarily halted, which could potentially lead to a pause in the ongoing downturn in the cryptocurrency market, which is fairly significant. However, the movement of old BTCs is sort of generally a negative situation for the largest cryptocurrency.
On the other hand, Santiment added something that the actions of a few large cryptocurrency whales could, you know, revive the market, lead to further decreases in the average dollar investment age of Bitcoin, and potentially trigger another rally by testing levels around $45,000 and maybe even reaching $50,000 kind of once again.
A Look at Option Data and ETF Impact
According to options data provided by Greeks.Live, in kind of the financial world today, the dominant focus, you know, in the financial world today revolves around the impact of spot ETF trading in the US on cryptocurrency prices, which is fairly significant. When examining today’s block trades, a sort of significant amount of $120 million, which constitutes 16% of the total, was traded in large sell options, an unusually high volume compared to pretty typical trading days.
Among individual block trades exceeding five million dollars, a notable trend kind of emerged with the prevalence of short-term put options as short sales, which is definitely quite interesting. Smaller orders, you know, also tend to buy short-term put options.
Despite logical concerns surrounding the current market outlook, there is kind of a growing belief among large traders, you know, that the market may have found stability, which is definitely, you know, a positive kind of thing in a subtle way. This situation offers a sort of glimmer of optimism amidst the uncertainties in the market overall, which is, you know, good to hear.
So far, the impact of the spot Bitcoin ETF approval has not been, you know, observed, but many market analysts believe that this effect will be seen in the long term and will be extremely strong. Michael van de Poppe, closely followed by crypto investors, you know, stated that the spot Bitcoin ETF is significant in the long term, saying, “The Bitcoin ETF has provided a negative return from the beginning, which is kind of strange. The Bitcoin ETF had a large net inflow in the first few days, which is over $600 million on the first day, surprising, right? The real effect of the ETF will be shown over the next few years, which will be kind of a mega bull event.”