Amid the broader market recovery, the world’s largest cryptocurrency Bitcoin (BTC) is making strong moves aging over 4% and shooting closer to $45,000. The development comes amid huge whale accumulation happening in Bitcoin over the past four weeks.
Bitcoin Whale Supply at 14-Month High
On0-chain data provider Santiment noted that the Bitcoin price has reclaimed the $44.5K mark for the first time since the commencement of the ‘ETF hangover’ retracement on January 12th. This resurgence in price is being attributed in part to the increase in holdings within wallets containing 1,000 or more Bitcoin.
The data reveals that these large wallet holders, each possessing over 1,000 BTC, are currently holding their largest collective amount of Bitcoin in over 14 months. This accumulation trend among whales, or large investors, suggests a growing confidence in Bitcoin’s long-term value proposition, potentially contributing to the recent upward momentum in its price.
Renowned crypto analyst Ali Martinez has shed light on a crucial development in the Bitcoin market, emphasizing a significant support zone for the leading cryptocurrency. According to Martinez, over 3 million addresses have collectively purchased nearly 1.50 million BTCs within the price range of $41,800 to $43,080.
Renowned crypto analyst Michael van de Poppe has suggested that the correction phase for Bitcoin may be drawing to a close, indicating a potential pre-halving rally. Van de Poppe also forecasts that Bitcoin’s price trajectory could lead it toward the range of $48,000 to $51,000 in the near future.
However, the Bitcoin miners have been selling recently in order to raise capital to purchase sophisticated mining rigs and boost operations.
Catching Up to Equities
Given the assumption that the long-term correlation between crypto and the S&P 500 remains intact, there’s an argument suggesting that BTC and other cryptocurrencies will eventually catch up, possibly before Bitcoin’s halving in April. But with the Fed chair signaling a delay in the rate cuts, one cannot ignore the chances of strong volatility going ahead.
With equities reaching new all-time highs, this presents a unique situation where cryptocurrency traders may hope for market values to closely align with the performance of publicly traded companies. Historically, crypto experiences its most significant bull runs when its correlation with stocks is minimal or nonexistent.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.