Bitcoin Price Up 4.4% Today amid Rising Demand from Whale Investors

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As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market fluctuations and trends. The recent surge in the total cryptocurrency market cap to $2.51 trillion and Bitcoin’s price pump to over $67,000 is an exciting development for me.

The value of all cryptocurrencies combined experienced a significant increase of over 3% in the last 24 hours, reaching approximately $2.51 trillion. This growth can be attributed to Bitcoin‘s price rise, which saw an uptick of more than 4%. Bitcoin momentarily peaked at around $67,452 during early Asian trading on Friday. As a result, the Bitcoin market has shown bullish tendencies with consistent closures above both the 50 and 200 daily Moving Averages (MAs).

Moreover, the Bitcoin dominance had its highest daily close of around 56.50 percent on Thursday.

Based on the analysis of cryptocurrency expert Benjamin Cowen, it is possible that Bitcoin’s market dominance may rise to around 60% within the next few months. This increase could then lead to the long-awaited shift in the crypto market, known as the altseason, where other cryptocurrencies experience significant price growth relative to Bitcoin.

Bitcoin Whales Increases Accumulation Rate

After recognizing Bitcoin as a trustworthy digital equivalent to gold, an increasing number of institutional investors have been funneling larger sums into the cryptocurrency and associated offerings. For example, Marathon Digital Holdings Inc (NASDAQ: MARA) revealed its commitment to Bitcoin on Thursday by purchasing $100 million in Bitcoins, joining the ranks of MicroStrategy Inc (NASDAQ: MSTR) and other publicly-traded companies.

As a crypto investor, I’ve been closely monitoring the on-chain data from CryptoQuant, and it’s clear that long-term Bitcoin holders have been actively accumulating more coins over the past year. This trend has led to a significant decrease in the amount of Bitcoin supply on centralized exchanges, reaching a multi-year low recently.

Long term #Bitcoin holders 3-5y are increasing massively

They are not selling 💪🏽

Credits to @ki_young_ju

— Quinten | 048.eth (@QuintenFrancois) July 25, 2024

Based on the analysis of on-chain data conducted by Spot On Chain, a large investor, often referred to as a “smart whale,” has purchased 1,147 Bitcoins, valued at more than $75 million, from Binance within the past nine days. It is worth mentioning that BlackRock’s IBIT was the sole Bitcoin ETF issuer reporting a substantial net inflow of approximately $70.75 million on Thursday.

In recent developments, investors have broadened their crypto holdings by investing in newly approved Ethereum exchange-traded funds (ETFs). Notably, Grayscale’s ETHE saw a net outflow of approximately $346 million, but most other Ethereum spot ETF issuers recorded positive cash inflows on Thursday.

Economic Outlook

In recent months, the connection between Bitcoin’s price movements and those of the stock market has weakened noticeably. However, the latest stock market downturn has caused ripples throughout the crypto sector. Additionally, many institutional investors who are active in the stock market have also taken an interest in Bitcoin.

Despite this, the cryptocurrency market is projected to experience notable growth in liquidity during the next few months due to various factors. One of these factors is the upcoming US general election. Furthermore, it’s anticipated that the US Federal Reserve will implement much-awaited interest rate reductions, following the lead of countries like China, the Bank of Canada, and the European Central Bank (ECB).

Midterm Price Prediction

The price of Bitcoin is poised to challenge its record peak of around $73,000 imminently, based on its pattern of successively higher highs and lows in the daily chart. Furthermore, an encouraging sign for bulls emerged when the one-hour RSI, a popular momentum indicator, surged out of its descending trendline.

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2024-07-26 12:39