Recent analysis by IntoTheBlock has uncovered a significant shift in Bitcoin accumulation patterns, particularly among large holders of the cryptocurrency. Despite prevailing market sentiments of fear, uncertainty, and doubt (FUD), data shows that holders with control of at least 0.1% of the total Bitcoin supply have been quietly increasing their holdings.
On June 24th, during a period when Bitcoin’s price briefly dropped below $60,000, large holders took advantage of the dip by adding a substantial 7,130 BTC to their wallets. This surge in net inflows marked the highest increase since late May. Such accumulation trends amidst market downturns indicate the confidence of major investors in Bitcoin’s long-term price trajectory.
Signs of Local Bottoms
While concerns for further losses persist, data suggests that signs of local bottoms have started to emerge. According to CryptoQuant, these signs became apparent after a correction of about 15% over the past three weeks. The correction on Monday further supported this possibility, as indicated by a decrease in open interest in the futures market and near-zero funding rates for perpetual contracts.
Recent market movements have shown a balanced market with healthier price structures and less overly optimistic sentiment. Short-term holders have witnessed Bitcoin’s price dipping below the realized price of $62.6k, placing this group in slightly negative average profitability. However, historical data suggests that this level has previously served as support during local corrections within broader uptrends.
Several factors are at play influencing Bitcoin’s price action. Uncertainties surrounding American monetary policy and upcoming data releases such as GDP, initial jobless claims, and inflation data (PCE) are expected to impact market sentiment in the short-term. The macroeconomic landscape, along with investors’ risk appetite, continues to shape the trajectory of the cryptocurrency.
The quiet accumulation of Bitcoin whales amidst market downturns speaks volumes about the underlying confidence in the long-term potential of the digital asset. As market dynamics continue to evolve, it is essential for investors to closely monitor these accumulation patterns and external factors influencing Bitcoin’s price movements.
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