• Semler Scientific invests $40 million in Bitcoin, borrowing a strategy from MicroStrategy.

• Despite $9.6 billion BTC being transferred over multiple addresses, Mt Gox has not yet started paying consumers back.

• Since long-term holders have started to re-accumulate, the spot BTC market may be the driving force behind the current bull market.

Tuesday saw a temporary drop in Bitcoin from the $70,000 milestone following significant whale maneuvers by Mt Gox and Semler Scientific. Additionally, Glassnode provided important on-chain information that shed light on the current situation of the market.

Semler Scientific and Mt Gox stock market with recent BTC moves

The health technology company Semler Scientific announced in a press statement on Tuesday that it has chosen to use Bitcoin as its main reserve asset. Semler Scientific paid $40 million, including fees and expenditures, for 581 BTC. The company’s chairman, Eric Semler, stated, “Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment.”

Semler gave other justifications for their BTC Treasury choice, including the deflationary nature of Bitcoin, its increasing institutional adoption following the introduction of a spot Bitcoin ETF, the possibility of enormous returns, and the growing awareness of its narrative as digital gold. “After studying various alternatives, we decided that holding Bitcoin would be the best use of our excess cash,” Mr. Semler said. The move, which is based on a playbook from MicroStrategy, has caused a 36% increase in Semler’s stock price in the last day.

As it starts the process of returning investors’ money, the now-defunct cryptocurrency exchange Mt Gox transferred over 141,000 BTC, valued at over $9.6 billion, to many addresses on Tuesday, according to Wu Blockchain. The corporation has stated that it hasn’t started payouts with BTC itself or the money from the sale of digital assets, although many have voiced concern that the return may cause many users to sell their tokens and, in turn, crash the price of BTC.

Glassnode sheds light on Bitcoin’s recent on-chain movement

According to statistics from Glassnode, the correction drawdown of bitcoin in the current 2023–2024 bull market is comparable to that of the 2015–2017 upswing (peak drawdown of 36%), which recovered from a deep correction of roughly -20.3%. Since there were little to no Bitcoin derivatives available at the time, the similarities depend on the latter being determined by spot pricing. Similarly, Glassnode pointed out that the 2023–2024 upswing might be mostly driven by spot trading after the successful launch and inflows into various spot Bitcoin ETFs.

In addition, Glassnode notes that after Bitcoin surged to an all-time high of $73,000 in March, some long-term investors pulled out, resulting in net withdrawals from Bitcoin ETFs that lasted a month and sent BTC down to a low of $57,500. “Over time, the lower prices and seller exhaustion started to give way to a regime of re-accumulation,” stated Glassnode. The net inflow into US Bitcoin ETFs demonstrates this, averaging $242 million daily – eight times greater than the $32 million daily sell pressure from miners.

Furthermore, with a supply growth rate of roughly 12,000 BTC per month, long-term holders (LTH) have started to re-accumulate for the first time since December 2023 or before.