Cryptocurrency Market Soars Due to Regulatory Relief and Increased Whale Activity
Article Highlights
The cryptocurrency market has experienced a 1 percent surge, reaching $2.54 trillion, driven by increased on-chain activity and whale traders.
Positive regulatory news regarding Ethereum and Ripple lawsuits have contributed to the market’s bullish turn, with India focusing on clear crypto regulations.
Whale accumulation suggests a forthcoming market rebound, although technical indicators and analyst predictions indicate that the price of Bitcoin could still decline.
Prepare for takeoff! The cryptocurrency market has witnessed a remarkable 1 percent increase in the past 24 hours, reaching approximately $2.54 trillion during Thursday’s London session. This upward movement has been fueled by heightened on-chain activity, particularly involving whale traders, resulting in Bitcoin’s price bouncing back above $65,000 and stabilizing around $65,834 at the time of reporting.
Shift in Crypto Regulatory Landscape
In a significant turn of events, the cryptocurrency market has turned bullish following crucial regulatory decisions. The United States Securities and Exchange Commission (SEC) has concluded its extensive investigation into Ethereum, indicating a favorable outcome for the second-largest cryptocurrency by market capitalization. Additionally, the SEC’s move to seek a $102.6 million fine in the Ripple lawsuit suggests that another longstanding legal battle is nearing its end.
India, emerging as a pivotal center for crypto and web3 innovation, has intensified its regulatory oversight. Binance, a prominent exchange, has been fined $2.2 million for violating anti-money laundering regulations, underscoring India’s commitment to clear guidelines despite earlier uncertainties.
Whales Continue to Accumulate
According to Santiment, a leading on-chain data analysis firm, sentiment surrounding Bitcoin has been characterized by prolonged negativity and fear over the past four weeks. However, amidst this cautious sentiment, large investors have been steadily accumulating Bitcoin in anticipation of an upcoming market rebound.
The majority of the crowd is fearful or disinterested in Bitcoin as prices fluctuate between $65K and $66K. This sustained level of fear, uncertainty, and doubt is uncommon, as traders continue to sell off. The exhaustion of BTC traders, combined with whale accumulation, typically leads to bounces that reward patient investors.
pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed)
June 20, 2024
Recent data reveals a significant purchase by a single whale, who acquired 6,070 Bitcoins worth approximately $395 million. In contrast, retail trading volumes for Bitcoin have declined in recent weeks, reflecting cautious sentiment among retail investors.
BREAKING
A GIANT WHALE BOUGHT 6,070 BTC
WORTH $395 MILLION IN RECENT
BTC PRICE DROP
THIS WHALE HAS MADE OVER $1B IN
PROFITS FROM BTC BY BUYING LOW
AND SELLING HIGH.
BULLS WINNING
pic.twitter.com/pjdB6DYr2h
— Ash Crypto (@Ashcryptoreal)
June 20, 2024
Is the Correction Over?
From a technical standpoint, analysts caution that Bitcoin’s price trajectory remains uncertain until it consistently closes above the $67,000 mark on higher time charts. Notably, outflows from US-based spot Bitcoin ETFs continue to exert selling pressure on the flagship cryptocurrency.
#Bitcoin
has fallen below the +0.5σ MVRV pricing band at $67,890, which could trigger a correction towards the mean pricing band at $54,930.
pic.twitter.com/zZvswgpUpS
— Ali (@ali_charts)
June 19, 2024
Renowned crypto analyst Ali Martinez has suggested a potential bearish trend for Bitcoin, projecting a decline towards $54,930 based on the Market Value to Realized Value (MVRV) indicator.
Also Read:
Crypto-1, SEC-0! Ethereum 2.0 Investigation Dropped After Consensys Lawsuit
Thinking of following the whales and buying Bitcoin? Conduct your own research first and never invest more than you can afford to lose!
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Bitcoin