Bitcoin Whales Snatch 34K BTC After December Dip, Analyst Reveals
I. Market Shift Overview
According to Cauê Oliveira from Blocktrends, institutions that dumped Bitcoin in late December after its peak are now back to purchasing as the price dips below $100,000. Bitcoin whales, or large holders, have been on a buying spree. Since the December dump, they've scooped up 34,000 BTC. This news has garnered 8,202 total views and 24 total shares. You can even listen to the article in 2 minutes and 28 seconds.
II. Market Movements in December and January
After hitting a high of over $108,000 on December 17, thanks to the US Federal Reserve's interest - rate cut, wallets holding 1,000 - 10,000 BTC dumped 79,000 BTC in the week following December 21. This led to a 15% correction in the Bitcoin price. But as Blocktrends' head of research, Cauê Oliveira, pointed out in a January 8 CryptoQuant post, institutional investors have since accumulated more than 34,000 BTC (valued at around $3.2 billion). This accumulation is providing the buying pressure fueling Bitcoin's current recovery.
These large - scale buyers took advantage of the price consolidation. They started making significant trades, which were broken down into multiple smaller orders, when Bitcoin was trading below $95,000. After a nearly 80,000 BTC sell - off in late December, Bitcoin's seven - day balance change has turned positive.
At the time of writing, Bitcoin was trading at approximately $94,900, showing a 2.3% decline on the day. This drop occurred in tandem with the broader crypto - market as US jobs and economic data dashed hopes of further interest - rate cuts at the end of January. Additionally, Bitfinex analysts noted in a January 6 market note that sell - side liquidity in Bitcoin markets is "shrinking at a rapid pace," suggesting that the worst of the downward price pressure may be over.
III. Future Outlook
Analysts are quite optimistic about Bitcoin's prospects this year. They predict a possible record rally, driven by the expected pro - crypto policies from the incoming US President - elect Donald Trump and the potential adoption of Bitcoin by nation - states. Fidelity Digital Assets research analyst Matt Hogan wrote in a January 7 paper that the firm anticipates more nation - states, central banks, sovereign wealth funds, and government treasuries will aim to establish strategic positions in Bitcoin.
Blockware analysts also stated late last month that in a worst - case scenario, a US Bitcoin reserve could push the price above $150,000, while in a best - case scenario, the cryptocurrency could soar to over $400,000.