“If the price of Bitcoin goes down, I lose money. I might pump, but I don’t dump.”
You might have, most definitely, stumbled upon this Elon Musk statement while scrolling through social media today. The market’s largest cryptocurrency witnessed mini-pumps in succession over the past 24 hours owing to Musk’s public appearance on “The B Word.” Riding on the back of Elon Musk’s claims, Bitcoin went on to cross the $32,500-mark. However, the same could not persist for long.
Bitcoin pumped, but here’s what traders had to say
Bitcoin was back in the $31k zone at press time, with the 24-hour RoI having shrunk down to merely 3%. In fact, at the time of writing, the Futures perpetual funding rate remained in the negative zone (-0.005%) too, indicating that sellers (shorts) were demanding more leverage.
Source: Glassnode
The funding rate witnessed similar levels at the beginning of this month, and as can be seen from the chart attached, BTC’s price correspondingly kept dropping. However, it is not possible to estimate the timing or trigger that will cause buyers to gain back confidence and pull up the price. Nonetheless, one thing can be said with surety – traders did not necessarily pay heed to the pump.
Who is ‘buying the dip?’
The Bitcoin fish ratio, at the time of writing, pictured an interesting trend. The curve’s parabolic[1] resemblance indicated that the ratio of supply held by fishes (HODLers who possess 0-10 BTC) has been increasing. It also signaled that these “little guys” have been buying the dip. Highlighting the same in a recent tweet, on-chain analyst Willy Woo claimed,
“Little guys hold 31% of what the big guys hold.”
On the other hand, the whale transaction count[2] has comparatively remained static over the past few days –
