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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Jun 13, 2024 08:25 UTC
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Supply Shrinks as Bitcoin Whales Accumulate: Should You Buy the Dip Now?
Fueled by positive events like the halving and ETF approvals, investors are accumulating Bitcoin.
Regulatory clarity and interest from big players like Brazil's Itau Unibanco bank are bringing more institutions into the crypto market.
Bitcoin's price is stuck in a range and needs to break above $72k for a near-term rally.
Crypto bulls, are you taking note? Bitcoin is on the move!
The Bitcoin (BTC) supply on centralized cryptocurrency exchanges has been steadily decreasing over the past few months. Recent global events have encouraged significant accumulation of the flagship cryptocurrency, making it an exciting time for investors. For example, the fourth Bitcoin halving has successfully reduced the coin’s annual inflation rate to below 2%.
Several spot Bitcoin exchange-traded funds (ETFs) have gained approval across various jurisdictions, leading to the accumulation of over 1 million coins, accounting for about 5% of the total Bitcoin supply. On Wednesday, Fidelity’s FBTC led US spot Bitcoin ETFs, attracting $50.6 million in cash inflows, resulting in a net inflow of approximately $100.8 million.
Keep reading to discover what’s driving this Bitcoin bonanza and how it could impact the price in the coming months.
Institutions are Taking Note!
On-chain data from Santiment shows that Bitcoin’s supply on exchanges has dropped to multi-year lows of approximately 942,000 coins. This significant decline coincides with increased regulatory clarity worldwide, attracting more institutional investors.
Brazil’s largest bank, Itau Unibanco, launched crypto trading for all customers on Wednesday, marking a major step in mainstream adoption.
Crypto Whales Increase Their Holdings
Data from CryptoQuant revealed that over 20,000 Bitcoins were transferred to addresses associated with crypto whales in recent days, following increased market volatility. This suggests that large investors are taking advantage of price fluctuations to increase their holdings.
The potential for interest rate cuts in the United States later this year, driven by upcoming elections and similar actions by the European Central Bank (ECB) and the Bank of Canada, has increased overall bullish sentiment in the crypto market.
Bitcoin Price Trends and Future Projections
Bitcoin’s price has fluctuated between $61,000 and $72,000 over the past four months without a clear breakout. According to popular crypto analyst Captain Faibik, Bitcoin needs to consistently close above $72,000 to trigger a rally towards $90,000 in the near term.
With institutions entering the game and whales accumulating, is this your chance to Buy the Dip? Do your own research before making any investment decisions.
Also Read : Bulls Vs Bears: XRP Price Targets $5 and $12 levels, Pending Clearance of These Challenges
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