Surge in Bitcoin Accumulation by Large Holders May Push BTC Above $70,000
Summary:
Large holders of Bitcoin (BTC) are accumulating the crypto at a high rate, similar to the trend seen before the 2020 market surge. Bitfinex research indicates this could drive Bitcoin above the $70,000 mark. Factors like the expected interest rate cut, less selling pressure from long-term holders and an increase in liquidity are predicted to further boost Bitcoin's value. However, Bitcoin's price has not risen, primarily due to older coins being sold off, leading market experts suggest that a necessary market 'reset' must first take place.
Large Bitcoin (BTC) holders have amassed considerable quantities of the cryptocurrency, similar to the levels seen prior to the 2020 market surge. This trend could potentially contribute to Bitcoing surpassing the $70,000 threshold. Bitfinex research indicates that Bitcoin accumulation by entities possessing at least 1,000 BTC is at a four-year peak, mirroring the trend seen in 2020.
Bitcoin 'whales,' have been progressively purchasing Bitcoin, reminiscent of the pattern seen before the 2020 market boom. Current accumulation has reached its highest point in the past two months, setting a new historical peak for Bitcoin holdings.
External factors such as the expected cut in interest rates and a boost in institutional investment might add further fuel to Bitcoin's ascension. Further catalysts noted by Bitfinex analysts include accelerated daily ETF buying, a decrease in sell-off pressure from long-term holders and a surge in liquidity, potentially triggered by the projected rate cut.
On the 10th June, the first day of net outflows in over 19 consecutive trading days was recorded on American Bitcoin exchange-traded funds (ETFs). Outflows from the 11 US-based ETFs totalling $64.9 million were reported by Farside Investors. Subsequent to this, the American Bitcoin ETFs registered over $200m in negative net outflows on the 11th June.
According to market expert Rekt Capital, Bitcoin has successfully marked $66,000 as its latest support level on the weekly chart. Furthermore, as outlined by LookIntoBitcoin, Bitcoin's short-term holder realized price climbed to $63,729 on the 11th June, typically acting as a dynamic support line for Bitcoin during market rallies.
The latest increase in the realized price has not resulted in a corresponding bump in Bitcoin's price, primarily due to older coins entering the market. Thomas Fahrer, co-founder of Apollo noted, a market 'reset' must occur to establish a new base, potentially around the $65,000 - $70,000 mark, much like it did around $10,000 in 2020. This report does not offer investment advice or suggestions; readers should undertake their own research when making investment decisions.
Published At
6/12/2024 7:25:00 PM
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