Why is Bitcoin price stuck near $52,000?

• The number of institutional investors rose sharply.
• Fees collected from miners fell by 32% for the week.

This was a sign of clear bullish sentiment, Bitcoin [BTC] In the last week, nearly $540 million worth of cryptocurrencies were withdrawn from centralized exchanges. According to on-chain analytics firm IntoTheBlock, this was the largest weekly net outflow since June 2023.

Typically, spikes in foreign exchange outflows indicate a short-term accumulation trend, likely motivated by expectations of higher returns in the future.

The trend also reflected investors’ preference for HODL rather than liquidating their holdings for profit. This was interesting considering that, according to AMBCrypto's analysis of Glassnode data, more than 94% of all Bitcoin companies were making profits as of this writing.

Source: Glassnode

What the dealers are up to

Another telling indicator of broader market accumulation was the increase in the number of institutional investors.

The number of unique entities owning at least 1,000 coins reached 1,670 at press time, up 12% from last month. This number was also reminiscent of the early bull market phase in 2021.

Source: Glassnode

As users focused on accumulation, transaction activity on the network decreased. Bitcoin miners collected just over $11 million in network usage fees last week, a 32% decline.

In fact, a closer look revealed a sharp decline in the percentage of miners’ revenue from fees, falling from 26% at the start of the year to 3.23% at press time.

Glassnode

This may not be pleasant reading for miners guarding the first-generation blockchain, as they will face a drop in block rewards after next month's halving.

According to CoinMarketCap, King Coin has fluctuated in a tight range between $51,000 and $52,000 over the past week. The sideways movement was another sign that Bitcoin was accumulating.

Read BTC price prediction 2024-25

The market was “extremely greedy” at press time, according to AMBCrypto’s investigation into Hyblock Capital’s move.

This suggested that more investors were bound to enter the market, eventually leading to an upward breakout.

Source: Hyblock Capital

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