As a seasoned analyst with over two decades of market experience under my belt, I have witnessed numerous bull and bear cycles in the crypto space. The current Bitcoin scenario presents an interesting conundrum: despite recent rejections at key levels, whale accumulation is reaching new heights not seen in 17 months. This, coupled with a significant drop in exchange supply, suggests that these large players are buying the dips aggressively and moving BTC to cold storage, which could potentially set the stage for another run towards $60,000.
Following a significant rebuff at the $65,000 price mark, Bitcoin‘s value has again experienced substantial selling, finding support at around $58,000. Conversely, wallets containing more than 100 Bitcoins have reached a 17-month peak just before some significant events slated for September.
Bitcoin Whale Accumulation Continues Hitting New Milestone
In spite of the recent market fluctuations and setbacks over the past month, a significant increase in Bitcoin whale accumulation has been observed. According to Santiment’s report, there has been a consistent growth in the amount of Bitcoin held by these ‘whales’, with their holdings increasing substantially. Over the last month alone, the number of whale wallets (holding over 100 Bitcoins) has increased by approximately 283, bringing the total to around 16,120. This figure marks the highest number of large Bitcoin holders in the past 17 months.
Additional information from Santiment indicates a significant decrease in the amount of Bitcoin held on exchanges, with approximately 40,000 Bitcoins, equivalent to $2.4 billion, being withdrawn over the past three days. This massive withdrawal suggests that large Bitcoin investors (often referred to as “whales”) are transferring their Bitcoin to offline storage and buying Bitcoin at lower prices aggressively.
Combining the increase in whale holdings and favorable broader economic signals could potentially spur Bitcoin’s price back up to $60,000. On Friday, the actual US PCE inflation rate was 2.5%, lower than anticipated. Additionally, the monthly US core PCE index for July ended at 0.2%.
Key Crypto Events Ahead in September
Next month in September might turn out to be quite bustling for the cryptocurrency markets. On the horizon, we have the upcoming Cardano upgrade slated for launch on Sunday, September 1. This update will propel the blockchain network towards a more robust governance system and increased decentralization.
The highly anticipated event taking place in September is the FOMC meeting, followed by Jerome Powell’s decision regarding interest rate adjustments. It’ll be intriguing to find out whether this decision involves a quarter-point (25 basis points) or half-point (50 basis points) reduction. As we move towards the end of the year, there are growing market predictions suggesting a potential total reduction of 100 basis points. In addition, with positive economic outlooks, some popular altcoins may catch the attention of investors as they aim to ignite the next altcoin boom.
Additionally, it’s been announced that Donald Trump and Kamala Harris will be participating in their first presidential debate. This news has captured the attention of the cryptocurrency community, given that the crypto industry is playing a significant role in the 2024 U.S. Presidential election discourse.
On the contrary, the Asian market is preparing for significant crypto events. For instance, the Korean Blockchain Week commences on September 9, followed by Token2049 later in the month in Singapore. Adding to this, Bitcoin whales are accumulating and there’s a decline in exchange supply, which could potentially ignite the next wave of the bull run.
There could be numerous factors contributing to market volatility in September, including the presidential debate between Trump and Harris, possible interest rate reductions by the Federal Reserve’s FOMC, CZ’s release from prison, among others. Furthermore, significant events such as the Korean Blockchain Week and Singapore 2049 are also scheduled for this month.
— Wu Blockchain (@WuBlockchain) August 31, 2024
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2024-08-31 09:44