Bitcoin whales made a historic move in July. These large investors purchased a total of 84,000 Bitcoins, creating an expectation of market volatility. Such a high amount of accumulation is usually known as a sign of an upcoming major market shift. July marked the largest monthly increase in Bitcoin purchases since 2014.
What is Expected Following Large Bitcoin Purchases?
Bitcoin’s price experienced a short-term decline in July. However, market indicators are showing signs of a bull market. Especially when Bitcoin’s value dropped to the $50,000 level, record levels of futures and spot trading volumes were observed. A total of $154 billion in futures trading and $83 billion in spot trading occurred. After this decline, Bitcoin’s value recovered by 23% from its weekly low. Access NEWSLINKER to get the latest technology news.
BlackRock’s Bitcoin ETF has maintained its stability almost without any loss since the beginning of the year. This ETF, which experienced only one day of fund outflow since January, reached a total investment volume of over $20 billion. BTC whales buy the dips every time it approaches $50,000. This trend has shown itself with sharp declines and subsequent strong recoveries on the 5th of each month in July and August.
Short-Term Expectations Point to $70,000
Analysts predict Bitcoin’s short-term peak at $70,000. Notable purchases during drops below the $50,000 level indicate that BTC is absorbing selling pressure and signaling a potential upward movement.
In the coming weeks, there is a strong expectation of a new wave of increases in Bitcoin. Bitcoin whales continue to determine the fate of the markets. All eyes are on Bitcoin’s next moves in the coming weeks. At the time of writing, Bitcoin’s price was around $60,540.
The cryptocurrency market is calm due to the weekend. The market will focus on the Fed’s interest rate decision to regain its upward outlook. A signal of a rate cut from the Fed is expected to positively reflect on cryptocurrencies. Especially altcoin investors are in the group most in need of recovery as altcoins have experienced significant value loss recently. Prices have almost returned to last summer’s levels.
