Bitcoin BTC/USD whales have been quietly accumulating the cryptocurrency over the past month, despite the market’s recent downturn.
What Happened: Bitcoin whales have moved nearly $23 billion worth of BTC to “permanent holder addresses” in the last 30 days, observed Ki Young Ju, the founder, and CEO of CryptoQuant. He added that this recent spike in demand for Bitcoin among long-term holders is a sign of the King Crypto being in an “accumulation phase.”
“I’m pretty sure something is happening behind the scenes. 404,448 #Bitcoin have moved to permanent holder addresses over the past 30 days, and it’s clearly accumulation,” he wrote.
He predicted that various entities, including traditional financial institutions, companies, and governments, will publicly disclose their Bitcoin acquisitions in the third quarter of 2024.
Additionally, Ju highlighted other bullish indicators, such as the near-end of miner capitulation, a stable hash rate, and reduced selling pressure from long-term Bitcoin holders.
Despite the recent market slump, which saw Bitcoin prices briefly drop to $49,800 on Monday, the cryptocurrency has since recovered by 14% to reach $56,703 on Wednesday.
Why It Matters: The recent accumulation of Bitcoin by whales comes amid significant market volatility, driven by unexpected global financial events. On Tuesday, Jim Bianco of Bianco Research attributed a major market downturn to the Bank of Japan’s surprise interest rate hike on Jul. 31. This decision led to a massive unwinding of the yen carry trade, causing ripple effects across international markets.
Despite the market turbulence, U.S. stock markets rebounded strongly on Tuesday, with the S&P 500 and Nasdaq 100 both climbing over 2%. This recovery was driven by investor confidence in the U.S. economy’s resilience.
However, some experts remain cautious. Crypto trader Altcoin Sherpa predicted that Bitcoin might find its bottom in the $40,000s, suggesting further market volatility and potential liquidations. Additionally, the crypto market is facing increased unpredictability, described as a “random walk” by BloFin Academy.
Price Action: Bitcoin is trading at $56,726.50, reflecting a gain of 1.20% in the last 24 hours. Over the past month, Bitcoin has increased 1.52%. Year to date, the King Crypto has surged by 28.42%, according to data from Benzinga Pro.
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Image Via Pixabay
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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