Bitcoin (BTC) Price Attempts Bullish Recovery to $68K Fueled by Demand from Whale Investors

by

As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I find myself both intrigued and cautiously optimistic about the current state of Bitcoin. The recent rebound above $67K on Tuesday is a promising sign, but the midterm bearish outlook cannot be ignored.

Bitcoin‘s price, which had previously reached approximately $69K at its 2021 all-time high, has since retreated and is currently testing the level of around $68K, as seen over the past two days. However, on Tuesday, October 22nd, Bitcoin managed to rebound above $67K after experiencing a dip down to $66.6k on Monday. This price fluctuation has led to approximately $200 million being liquidated from the crypto-leveraged market, primarily affecting long traders, due to the increased volatility in the cryptocurrency market.

In simpler terms, the value of Bitcoin might temporarily decline over the short term, before a predicted strong upward trend begins later on. Additionally, Bitcoin’s price has recently broken free from a prolonged downward logarithmic trend that started in early March, which makes it more likely that we may experience a market slowdown.

As a crypto investor, I’m closely watching the technical indicators for Bitcoin. It seems that the price could potentially dip to around $64,600, which appears to be a strong support level. However, if we manage to maintain closing prices above $69,000 in the upcoming days, it’s likely we’ll see a surge toward its all-time high (ATH) by the end of this month.

Currently, the positive storyline about cryptocurrencies, particularly in October, is picking up speed. ApeCoin (APE) seems to be spearheading the rally among altcoins, while some meme coins are experiencing a surge as they break out of their bullish patterns.

Bitcoin Whales Continue to Accumulate

As the 2024 U.S. election draws near and speculation grows about further Federal Reserve rate reductions, on-chain analysis reveals a persistent trend of Bitcoin whales buying up large quantities. Additionally, the escalating conflict in the Middle East and tension between Russia and Ukraine have contributed to a global increase in fiat currency devaluation due to high inflation rates.

In my exploration, I’ve noticed that institutional investors are increasingly adopting a Bitcoin investment strategy to mitigate market uncertainties.

Based on recent market analysis, the amount of Bitcoin available on centralized platforms dropped by over 44,000 within the last week, leaving approximately 2.37 million coins as of now. This significant decrease in Bitcoin supply on these platforms has occurred concurrently with a sharp increase in demand from U.S.-based spot BTC Exchange Traded Funds (ETFs).

As a researcher, I’m sharing some insights from our latest analysis. On this past Monday, the U.S. spot Bitcoin ETFs experienced a significant net cash inflow of approximately $294 million. Interestingly, BlackRock’s IBIT led the pack with an impressive cash inflow of roughly $329 million on the same day, which now gives them control over Bitcoin worth about $26.45 billion.

Fidelity’s FBTC saw an inflow of approximately $5.9 million in cash and now has roughly $12.49 billion in Bitcoin holdings. On Monday, the biggest losers were Bitwise BITB with a net cash outflow of about $22 million, followed by HODL from VanEck and ARK 21Shares Bitcoin ETF (ARKB), which recorded outflows of around $7.6 million and $6 million respectively.

Today, as we speak, Metaplanet Inc has confirmed that they’ve successfully completed their 11th round of Stock Acquisition Rights, with an impressive 72.8% of these rights exercised.

As a result, Metaplanet will soon double its Bitcoin holdings from 861.4 coins.

Read More

2024-10-22 11:48