In his July 5 tweet, Davis said that while Bitcoin is trading at 70% below its all-time high (ATH), whales and small investors with less than 1 Bitcoin in their wallet are accelerating their purchases.

Davis stated that people realized that there would be only 21 million Bitcoins in circulation, so they started buying before it was too late. To prove his claims, he shared a trading chart broken down into cohorts by account size.

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Experts emphasized that Davis had a grain of truth in his theses. Sharing Glassnode data, Davis stated that since the price of Bitcoin fell below $30,000, whales with more than 1,000 Bitcoins in their account and small investors with less than 1 Bitcoin are the most intense buyers. In addition, the famous investor published another chart to show the net exit positions experienced in Bitcoin, and “The biggest exit in Bitcoin has passed in history.” he commented.

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Lark Davis stated that in the light of the tables he shared, the level of $ 10,000 is far from being discussed, and investors turned their eyes to 21,800 after they failed to break the December low of 2020, 17,500. On Twitter, many experts agreeing with Davis stated that the new target is 32,000 and that the whales never broke their foot in the largest FUD in history.

Newly Generated Bitcoin Sales Do Not Put Pressure On The Market

In the report by Coinbase, it was stated that if all newly mined Bitcoins were sold directly to the market every day, this would only equal 900 BTC (approximately $18 million) selling pressure. Crypto exchange Coinbase (COIN) stated in a research report last week: “A common concern during cyclical declines in Bitcoin mining is the fact that how much Bitcoin miners are selling.”

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When the market is turbulent and the Bitcoin price drops, profit margins generally narrow, forcing more miners to become net sellers. Still, even if all newly mined Bitcoins are immediately sold to the market every day, this would equate to the selling pressure of only 900 BTC, representing 1-1.5% of the total daily volume. According to the report, a healthier Bitcoin derivatives market should offer miners more options in terms of potential hedging strategies.

It was stated that mining companies, which have expanded aggressively in recent years and strengthened their balance sheets in this process, are now forced to restructure their operations, and these conditions should "offer consolidation opportunities in the mining sector in the second half of the year". Although a stable balance has not been achieved in Bitcoin processing power, the level of difficulty continues to increase according to the data. The increased processing power level indicates that the Bitcoin network is getting stronger and new mining devices are joining the network.