Bitcoin Whales Hoarding as Supply Dwindles Is it Time to Buy the Dip
Key Points
Investors are accumulating Bitcoin due to positive events like the halving and ETF approvals.
Regulatory clarity and interest from big players like Brazil’s Itau Unibanco bank are attracting more institutions to the crypto market.
Bitcoin’s price is currently range-bound and needs to surpass $72k for a potential rally.
Attention crypto bulls! Bitcoin is on the move!
The supply of Bitcoin on centralized exchanges has been decreasing steadily, with recent global events prompting significant accumulation of the cryptocurrency. The fourth Bitcoin halving has successfully reduced the coin’s annual inflation rate to below 2%.
Various spot Bitcoin exchange-traded funds (ETFs) have received approval in different jurisdictions, resulting in the accumulation of over 1 million coins, representing about 5% of the total Bitcoin supply. Fidelity’s FBTC led US spot Bitcoin ETFs, attracting $50.6 million in cash inflows on Wednesday.
Discover what factors are driving this Bitcoin surge and how it could impact the price in the upcoming months.
Institutions are taking notice! On-chain data from Santiment reveals that Bitcoin’s supply on exchanges has dropped to multi-year lows, with approximately 942,000 coins available. This decline aligns with increased regulatory clarity globally, attracting more institutional investors.
Brazil’s largest bank, Itau Unibanco, introduced crypto trading for all customers, marking a significant step towards mainstream adoption.
Crypto whales are increasing their holdings, with over 20,000 Bitcoins transferred to whale wallets in recent days amidst heightened market volatility. This indicates that large investors are capitalizing on price fluctuations to boost their holdings.
The possibility of interest rate cuts in the United States later this year, influenced by upcoming elections and actions by the European Central Bank (ECB) and the Bank of Canada, has bolstered overall bullish sentiment in the crypto market.
Bitcoin’s price has been fluctuating between $61,000 and $72,000 for the past four months without a clear breakout. According to crypto analyst Captain Faibik, Bitcoin must consistently close above $72,000 to initiate a rally towards $90,000 in the near future.
As institutions enter the market and whales accumulate, could this be the opportunity to Buy the Dip? Conduct thorough research before making any investment decisions.
Tags: Bitcoin, Price Analysis