• Large investors have dominated accumulation, while retail traders scaled back
• Hike in large transactions and participation metrics hinted at mixed signals for Bitcoin’s near-term direction

Bitcoin [BTC] traders celebrated a monumental day after nearly $5 billion in realized profits flooded the market, marking one of the largest profit-taking events in recent months. The surge alluded to a heightened level of market activity, one possibly fueled by renewed investor confidence. 

However, such massive profit realizations can also precede greater volatility or a pullback in the crypto’s price. At press time, Bitcoin was trading at $104,370 following a bout of very minimal depreciation over the last 24 hours. Can Bitcoin sustain its rally, or is a pullback inevitable?

Large investors vs retail – Who’s driving the market?

Large investors have notably increased their Bitcoin holdings from 16.2M BTC to 16.4M BTC since the U.S Presidential elections. The scale of such accumulation highlighted the growing dominance of institutional players across the market. 

On the other hand, retail investors have reduced their holdings from 1.75M BTC to 1.69M BTC – Possibly signaling caution amid recent volatility. Therefore, it’s clear that large investors are setting the pace, potentially driving BTC’s price momentum forward. However, the fall in retail participation could limit additional upward pressure.

Surge in transactions – What does it mean?

The number of BTC transactions exceeding $100,000 has doubled in just one week, climbing from 15,620 to 32,320. Such a dramatic hike is a sign of heightened market activity, one suggesting that institutional players or high-net-worth investors are actively trading. 

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Author: Erastus Chami