No one believes Bitcoin price is fair

Hello my fellow bloggers! Today we will check what investors, traders and miners think about BTC price. As always, we will use plenty of charts. Let’s dive in and investigate.

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Bitcoin price is decided on an open market. Yes, it is highly manipulated and unregulated, but it is still a free open market. BTC price is decided by simple supply-demand equation. The more people think BTC is undervalued, the higher the price goes. The question is what people think now? We are at the start of an altcoin season. BTC was growing without any major correction longer than ever (see this article). Are investors, traders and miners happy with the current price?

Traders

We will start with traders. When someone wants to sell Bitcoin and likes the current price, BTC is move to a centralized exchange. In any other case, BTC would be held on wallet (cold storage, hardware wallet and etc.) The chart below shows BTC exchange balance is at a 2-year low. This means traders are not willing to sell BTC right now. In other words, they are waiting for significant price move first.

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Investors

Investors, or people who hold crypto for a long term, share the same feeling for BTC with traders. As you can see on the chart below, long-term holders are not selling their bags. We see some serious profit taking happened in January. Since then sales have significantly decreased. Looks like they are waiting for BTC price to achieve a new all-time high, perhaps $70K or $80k, before they will decide to sell another portion.

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Miners

Miners need to sell Bitcoin not only to take profit, but also to pay the bill for electricity. Miners always sell mined crypto. The chart below shows miners sell minimal amount of BTC. They are accumulating BTC on their wallets. It seems their either expect BTC price to rise soon or try to push BTC price by reducing supply. In any case, miners are not satisfied with the current price as well.

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Conclusion

The data shows all three groups: miners, investors and traders are not satisfied with current price. People don’t want to reduce their bags at current price. Market participants expect the price to go up and plan profit taking at further price levels. For this to come true we need the demand for BTC to increase and this will push the price up significantly.

Disclaimer

I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.

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