Bitcoin Rebounds to $71,000: Key Stakeholder Accumulation Signals Potential Pre-Halving Uptick
Summary:
Bitcoin recovery catches traders by surprise as the cryptocurrency rebounds to $71,000 following a significant accumulation by key stakeholders dubbed 'sharks' and 'whales,' who amassed 51,959 BTC on March 24. The Bitcoin halving event, slated for mid-April, is anticipated to see these high volume wallets continue to grow, thereby boosting overall crypto market caps. Despite initial fears of a sharp pre-halving downturn, BTC's fall has been limited, nearly matching the slump observed prior to the 2020 halving event.
A significant accumulation of Bitcoin over the weekend caught traders by surprise, leading to the cryptocurrency regaining a price point of $71,000. On March 25, Santiment, a blockchain analytics company, revealed that 'sharks' and 'whales' - wallets holding between 10 to 10,000 Bitcoin - amassed a total of 51,959 BTC on March 24. Valued at around $3.4 billion at that time, this equals to a daily accumulation of 0.263% of the currently available supply. As we approach the Bitcoin halving event, slated for April 19 or thereabouts, it is anticipated that these high-volume wallets will keep swelling, thereby positively influencing overall crypto market caps. Crypto analysts had previously feared a sharper pre-halving downturn, drawing similarities from historical patterns. Nevertheless, BTC's fall has been limited to about 17% from its highest-ever price of $73,738 recorded on March 14, bottoming out at $61,494 on March 20 per CoinGecko data. Technical specialist 'Rekt Capital' pointed out that, if this marks the end of the pre-halving downturn, the slump is comparable to that observed prior to the 2020 halving event. Rekt Capital had previously suggested that any pre-halving downturn would likely be milder and potentially shorter than seen historically. Kaiko, a crypto research firm, noted on March 25 that increased sell orders after the U.S. market closure correlated with heightened market volatility and last week's price dip. It also noted that crypto market liquidity varies across exchanges and trading pairs. Bitcoin traded 5.2% higher on the day, reaching a price of $70,252 at the time of writing, even peaking at the $71,000 mark in late trades on March 25.
Published At
3/26/2024 5:57:07 AM
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