The Top 3 Reasons Why Crypto Market Volatility Will Shoot Up: Who Will Regain Dominance—Bulls or Bears?

The Bitcoin price is undergoing a roller coaster ride as bulls and bears demonstrate their power at regular intervals. This has compelled the star token to stick within a pre-defined consolidation phase, which is expected to have a major impact in the coming days. On the other hand, many events occurred which favoured the crypto markets and some are on their way, which may offer a strong boost to the entire ecosystem. 

Having said that, here are the top 3 reasons, why BTC price volatility could spike, which may foster the entire crypto space. 

Mt.Gox Preparing to Materialise the Rehabilitation Plan

It’s been nearly a decade, and BTC holders have been calmly waiting for their share of BTC after the collapse of a popular exchange, Mt. Gox. Since then, numerous attempts and plans have been made to return the holders’ lost BTC, but each time the outcome has differed. Following the last update in September 2023, when the repayment deadline was extended by 12 months, the recent BTC movement has sparked speculation about the exchange’s preparations to complete the repayment. 

As per recent data, Mt. Gox has moved over 75,000 BTC to an unknown wallet in just a few hours. Interestingly, the BTC price dipped by over 2% after the rounds of transfers circulated, indicating bearish sentiments hovering around the repayment plan. Therefore, as analysed by many, the holders are quite likely to liquidate their holdings, which may offer massive selling pressure over the crypto. 

Whales Accumulate BTC Like Never Before

Each time the BTC price remains stuck within a region for a considerable amount of time, the whales find it a good opportunity to accumulate them. It has been happening for a long time and hence the recent data indicates two things, they are confident of an upside movement and the markets may soon face a supply shortage. 

The above data from CryptoQuant shows that the whales have intensified their accumulation since the start of the year. The levels have soared and marked new highs above 40,000 BTC in just 24 hours. The rate at which the whales are accumulating BTC raises concerns about crypto facing a supply shortage anytime from now. Although this may shoot up the prices, the fear of a massive pullback continues to hover as the whales hold the maximum of the circulation. 

US Spot Bitcoin ETFs Hold Over 4% of all BTC

The launch of the spot Bitcoin ETF was one of the bullish events, as the BTC price soared over 80% after the institutions entered the ring. Although the price traded sideways for a while, when the spot ETF accumulation soared, the price also gained momentum. The institutions have now accelerated their accumulation, regardless of the market variation. 

The data above shows that companies have begun to accumulate BTC in large quantities. Since the launch, they have held over 855,000 BTC, accounting for approximately 4.07% of total circulation. Although this is a huge bullish event, it also indicates that the token is gradually becoming more centralised, with a large share going to either institutions or whales.

The above factors point to a change in market dynamics that may occur in the coming days and the constant accumulation of Bitcoin could be the major reason. 

Also Check Out : Is The Bitcoin Bull Market Over? Here’s What Technicals Say About the BTC Price Rally!