Bitcoin purchases by whales accelerate, with over $1 billion worth of BTC collected in 9 days.
Bitcoin (BTC) whales have been on their longest “sustained” acquisition spree since May, accumulating 46,173 BTC (worth about $929 million) since September 27.
According to Santiment, the crypto market sentiment monitoring company that originally uncovered the data, such market activity among wallets holding 100 to 10,000 BTC will be a “rare occurrence” for the market in 2022. According to the site, the whale’s BTC acquisition streak has corresponded with a decrease in their holdings of the dollar-pegged stablecoin USDT.
The pattern is notable for reversing an 11-month reduction in whale BTC holdings previously recorded by Santiment. In late September, whales’ BTC holdings fell to a 29-month low of 45.72% of BTC’s circulating supply, amid fears of uncontrolled inflation.
The most recent accumulation of whales suggests that the Bitcoin market has struck a bottom and is prepared for a rebound upwards. The market is already indicating this, with BTC struggling to recoup $20,000. At the time of writing, BTC is trading at roughly $19,524, up 1.45% according to CoinMarketCap statistics.
Analysts anticipate that macroeconomic policies will push Bitcoin value.
The recent Bitcoin price recovery is being driven by anticipation that the US Federal Reserve and other central banks across the world may be compelled to change their policies in the near future.
Economic watchdogs have been boosting interest rates to combat rising inflation. Several commentators, including Robert Kiyosaki, author of the best-selling financial coaching book ‘Rich Dad Poor Dad,’ have claimed that the impending recession will force a pivot that will help the currently struggling store of value assets such as Bitcoin, gold, and silver.
Kiyosaki believes the US currency will plummet when the Fed begins to lower interest rates. Similarly, Daniel Kostecki, a senior market analyst at the investing firm Conotoxia, told Forbes that even if the Fed does not pause its interest rate rises, the crypto market might become positive again when the hikes reach 4.7%.
He believes that this peak will occur in the spring of 2023. He stated:
“If that were the peak, then perhaps the spring of 2023 could bring a bigger rebound in the cryptocurrency market as well, since expectations for interest rate cuts in the U.S. could begin to rise with falling inflation.”
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