12:30 ▪
3
Minimum read time ▪ up to
Despite the recent drop in Bitcoin prices, crypto whales took advantage of this opportunity to accumulate large amounts of BTC. This rush by large investors could signal the beginning of a new era for the queen of cryptocurrencies.
Massive accumulation of Bitcoin by whales
In the past 24 hours, Bitcoin whale addresses (defined as wallets holding at least 100 BTC) added more than 47,000 BTC to their holdings, according to CryptoQuant CEO Ki Yong-joo. It is said to be worth $2.9 billion at current prices. This notable accumulation does not include wallets associated with centralized exchanges, mining pools, or Bitcoin ETFs.
This whale activity occurred at a time when the price of Bitcoin was undergoing a significant correction and temporarily fell below the psychological threshold of $60,000. However, this decline is likely to be short-lived, with institutional investors primarily viewing it as a buying opportunity.
Technical analyst Recto Capital points out that a weekly close above $60,000 would confirm that this level is currently acting as strong support for the BTC price. Historically, after a halving, Bitcoin tends to spend about a week in the “danger zone” before returning to an upward trend.
Macroeconomic factors favorable for BTC
Besides whale activity, macroeconomic conditions also seem to favor a rise in Bitcoin prices. As Silent Protocol's İsa Sertkaya pointed out, the US Federal Reserve is showing signs of monetary easing that could benefit risk assets like BTC.
Furthermore, the latest US employment statistics show that job creation and unemployment rates are lower than market expectations. This relative weakness in the job market could prompt the Fed to maintain easy financial conditions for an extended period of time.
Finally, traders need to keep an eye on the key level of $60,000. According to Coinglass, falling below this threshold would result in the liquidation of over $700 million in leveraged long positions.
Massive accumulation of Bitcoin by whales during the recent price decline and a favorable macroeconomic environment suggest that BTC could enter a new uptrend. In this sense, a weekly closing price above $60,000 would be a strong signal. However, investors need to remain wary of liquidation risk if this support breaks down.
Maximize your Cointribune experience with the Read to Earn program! Earn points and access exclusive benefits every time you read an article. Sign up now and get rewards.
Passionate about Bitcoin, explorer of blockchain and cryptography, and a challenger at the forefront of communication. We guarantee you a free life and financial freedom, and we guarantee you a safe life so you can use your Bitcoin safely.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
