Bitcoin is under pressure at press time, looking at trends over the past two weeks. Despite the upswing in September, bulls started on the wrong feet in October, dropping from around $66,000.
Although the coin is up at press time, bouncing from below $60,000 after the slip on October 10, buyers need to prove that they are in charge.
Bitcoin Whales Accumulate 1.5 Million BTC In 6 Months
While fundamental factors are closely monitored, on-chain data can show where the market could be headed. In a post on x, one analyst notes that Bitcoin whales could be taking advantage of the low prices to accumulate. Â
In the past six months alone, whales holding at least 1,000 BTC have collectively acquired 1.5 million BTC. As more coins flow to whales, it could suggest that they are optimistic about what lies ahead and are buying despite deteriorating market conditions.
Since March, when prices rose to as high as $73,800, Bitcoin has been sliding, printing discouraging lower lows and diffusing any attempts for fear of missing out among traders. Technically, the all-time high is a crucial resistance that buyers must take out, spelling a new trajectory for the world’s most valuable coin.
In the short to medium term, buyers must clear $66,000, $70,000, and most importantly, $72,000. If the leg up is with expanding volume, Bitcoin might spike, aligning with whales’ optimism and lifting the broader market.
Rising Inflation And Accommodative Monetary Policy Could Drive Demand
Multiple factors may drive the coin in the coming weeks. Recent market data shows that inflation is rising in the United States. Trading Economics data shows that inflation rose to 2.4%, against 2.3% forecasted, over the last year despite economists’ predictions. Risk-on assets like Bitcoin tend to perform well in an inflationary environment.
Besides rising inflation, most central banks are slashing interest rates even further. After the rate cut in September, the United States Federal Reserve plans to drop fund rates even more in the coming months and early 2025.
Other central banks, including those in the European Union, the United Kingdom, and other jurisdictions, like China, have been following suit and reducing interest rates.
With the economy flush with cheap money, global liquidity rises, and more capital will be poured into BTC and other quality assets. Accordingly, there is a high probability that prices will align with the trend printed out in Q1 2024.
Feature image from Canva, chart from TradingView
