Amidst the broader market recovery, the world’s largest cryptocurrency, Bitcoin (BTC), is making solid moves. The moves are aging over 4% and approaching closer to $45,000. The development comes amid substantial whale accumulation happening in BTC over the past four weeks.
Bitcoin Whale Supply Reaches a 14-Month High
On-chain data provider Santiment noted that the Bitcoin price has reclaimed the $44.5K mark for the first time since the onset of the “ETF hangover” retracement on Jan 12th.
However, the reason behind the surge in the price is being attributed in part to the increase in the holdings of wallets that contain 1,000 or more BTC.
The data reveals that these large wallet holders, each possessing over 1,000 BTC, have been holding their largest collective amount of Bitcoin in over 14 months. This accumulation trend that’s happening among whales, or substantial investors, suggests that the confidence in Bitcoin’s long-term value is growing, potentially contributing to the recent upward momentum in its price.
What do analysts say?
Renowned crypto analyst Ali Martinez has shed light on a pivotal development in the Bitcoin market, emphasizing a significant support zone for the leading cryptocurrency.
According to Ali, over three million addresses have collectively purchased around 1.50 million BTCs within the price range of $41,800 to $43,080.
Michael van de Poppe, the famous crypto expert, suggested that the correction phase for Bitcoin may be an indication of a pre-halving rally. Van de Poppe also forecasts that the trajectory of the price of BTC may lead it toward the range between $48,000 and $51,000 in the future.
#Bitcoin going for it again, as we’re approaching $45K.
The range is still defined.
I think we’ll reach $48-51K pre-halving and correct back down for some more consolidation. pic.twitter.com/weTGSKLzcs
— Michaël van de Poppe (@CryptoMichNL) February 8, 2024
Crypto Miners are actively selling Bitcoin
On the other hand, the Bitcoin miners have been actively selling in order to raise capital to purchase more sophisticated mining rigs and boost operations. Halving is expected already in April, and the event suggests that the miner’s income for each individual block will be halved. This is why cryptocurrency miners need to improve their equipment.
Relationship between Crypto and Equities Amidst Fed Signals
Given the assumption that the enduring correlation between crypto and the S&P 500 remains intact, there’s an argument indicating that BTC and other cryptocurrencies will eventually catch up, possibly before Bitcoin’s halving in April. However, with the Fed chair signaling a delay in the rate cuts, one cannot disregard the possibilities of robust volatility ahead.
With equities achieving new all-time highs, this presents a distinctive scenario where cryptocurrency traders may anticipate for market values to closely align with the performance of publicly traded companies. Historically, crypto witnesses its most significant bull runs when its correlation with stocks is minimal or nonexistent.