As an experienced analyst, I believe that the recent surge in Bitcoin whale activity is a significant development in the crypto market. The fact that these large wallets have managed to accumulate such large holdings once again, similar to levels seen two years ago, indicates strong confidence and belief in the long-term potential of Bitcoin.
Currently, Bitcoin‘s (BTC) price hovers near the $66,000 mark, while behind the scenes, significant whale transactions have been on the rise. At this moment, BTC is valued at $66,184 and boasts a market capitalization of $1.304 trillion.
Bitcoin Whale Holdings Touch Two Year-Highs
According to recent findings from on-chain data provider Santiment, I’ve discovered that the number of Bitcoin wallets containing ten or more Bitcoins has reached a level last seen in 2021. This development comes amidst a significant surge in Bitcoin’s market capitalization, which has increased by an impressive 226% since then.
In the cryptocurrency world, it’s long been suspected that the failing exchange FTX was secretly influencing crypto prices during the latter part of 2022. Following FTX’s collapse in November 2022, an intriguing connection has emerged between the large Bitcoin wallets and the price fluctuations of Bitcoin.
As an analyst, I’ve observed a significant amount of whale activity in the Bitcoin market recently. Yet, in spite of this heightened trading volume, the Bitcoin price has persistently remained subdued and unable to surpass the $70,000 mark.
BTC Price Won’t Rally Until Fed Rate Cuts
From my perspective as a cryptocurrency analyst, while Bitcoin’s price has been nearing its record-breaking peaks, the majority of altcoins have remained subpar in comparison, trading beneath their past highs. This discrepancy between Bitcoin and altcoins has instilled a sense of caution among investors. Noted crypto expert Benjamin Cowen echoes my sentiments, asserting that the anticipation for an imminent altcoin bull run might be premature.
According to his perspective, a substantial crypto rally is uncertain before the Federal Reserve reduces interest rates once more. Historically, the altcoin market has shown stronger growth trends after such rate decreases, as mentioned by Cowen.
“The decline in the majority of altcoins is mirrored in the falling advance/decline index, echoing the period leading up to the Fed’s rate cut in 2019. This index saw a sharp decline before the Fed initiated rate cuts in July of that year. It’s essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a reduction in interest rates by the Fed.”
As a researcher, I would advise investors to exercise caution when considering purchases of altcoins during times when bitcoin’s market dominance is particularly high.
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2024-06-17 10:43