Analysts from Blocktrends report that major Bitcoin investors have resumed purchasing large quantities of the digital currency again, following its price drop at the end of 2024, which occurred after reaching a historic peak of over six figures.
Approximately 34,000 Bitcoins, valued at around $3.2 billion, have been amassed by institutional investors, contributing to the ongoing upward trend and recovery in Bitcoin’s market, as stated by Cauê Oliveira, head of research at Blocktrends, in a post on CryptoQuant dated January 8th.
Oliveira clarified that the increase in selling, or “buyup,” occurred following digital wallets containing between 1,000 and 10,000 Bitcoins offloaded approximately 79,000 BTC during the week following December 21. This sale took place a few days after Bitcoin reached a high of over $108,000 on December 17, soon after the US Federal Reserve announced an interest rate cut. The result was a significant drop, or “15% correction,” in the price of Bitcoin.
He pointed out that “major entities capitalized on the consolidation” by executing substantial trades, which were split into numerous smaller transactions, allowing them to amass Bitcoin while its price was still under $95,000.
Currently, Bitcoin is being exchanged for approximately $94,900 per unit, representing a decrease of nearly 2.3% compared to the previous day. This decline is in tandem with the broader cryptocurrency market, as recent US jobs and economic data have dampened expectations for additional interest rate reductions by the end of January.
According to Bitfinex analysts, as stated in their January 6th report, the supply of Bitcoin available for selling is decreasing significantly, and it’s possible that the most intense pressure causing its price decline has already occurred.
Experts are anticipating that Bitcoin might experience an unprecedented surge this year, with optimism stemming from potential Bitcoin-friendly policies proposed by the incoming U.S. President, Donald Trump, and increasing acceptance of Bitcoin by various nations.
According to a report by Matt Hogan, a research analyst at Fidelity Digital Assets, it’s expected that more countries, central banks, wealth funds, and treasury departments may aim to secure significant holdings of Bitcoin.
According to Blockware analysts from last month, if the U.S. were to establish a significant Bitcoin reserve, the price could potentially surge to as high as $150,000 in the most pessimistic outlook, or even reach over $400,000 under optimistic circumstances.
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2025-01-09 04:59