On Monday, July 26, the Bitcoin (BTC) price registered a strong recovery on its way to $40,000. This price rebound happened through a short squeeze with over $600 million in short positions getting liquidated in an hour’s time.
As a result, the Grayscale Bitcoin Trust (GBTC) premium registered a sharp rebound. Moving closer to the zero axes, the GBTC premium recorded a 2-month high of -3.407. As per data from Tiger Trade, GBTC premium jumped over 24% on July 26 during the Eastern U.S. trading hours.
On the other hand, on-chain data provider Santiment reported that the ‘millionaire tier’ Bitcoin whale addresses continue accumulation. It notes:
“Bitcoin whales holding between 100 and 10,000 $BTC continue accumulating since the May plummet that shook out many weak hands. These addresses have now accumulated 130,000 more $BTC in the past 5 weeks, and 40,000 more in just the past 10 days”.
While there was some improvement in the on-chain metrics of Bitcoin, the world’s largest crypto has yet again failed to continue the momentum.
Bitcoin Take A U-Turn, Enters 5% Correction
On Monday, Bitcoin and the overall crypto market surged on rumors that Amazon will soon facilitate crypto payments by the end of this year. However, later that day, the company confirmed that it has no such plans. Well, this was enough to fizzle out all the excitement within the crypto community.
At press time, Bitcoin is down 4.18% trading at a price of $37,147 with a market cap of $695 billion. The exchanges have started flooding with Bitcoin supplies creating sell-side pressure. Citing data from CryptoQuant, Chinese journalist Colin wu reports:
“Four hours ago, the FTX exchange had a net inflow of 10.32125k Bitcoin, which was the largest single-hour net inflow in the past year. At the same time, Bitcoin reserves in FTX soared to 35.32991k BTC”.
The recent volatility in the bitcoin price has put investors in major confusion. It will be interesting to see how BTC performs from here onwards. It is crucial for BTC to break past the $40,000 resistance to confirm the uptrend.