Key Points
- Large Bitcoin holders are amassing substantial amounts ahead of the 2024 halving event.
- Market sentiment and social trends significantly impact the crypto market, including Bitcoin and altcoins.
In a recent video interview, crypto analyst Hashoni shared his insights on the ongoing price rally of Bitcoin, patterns of accumulation by large wallet holders, and the potential influence of the upcoming halving event.
Hashoni noted that Bitcoin’s recent peak at $73,000, followed by a decrease to $60,000, has stirred significant interest among stakeholders, especially the large wallet holders often referred to as “sharks” and “whales”. Recently, the cryptocurrency market saw these large wallets go through their most significant accumulation period in a while, with wallets holding between 10 and 10,000 BTC collectively amassing a large amount of the cryptocurrency. He stated that their total holdings have reached 13.9 million BTC, the highest since July 2022, and their share of the total Bitcoin supply is at its highest since July 6, 2023.
Anticipated Dip Ahead of 2024 Halving
When asked about the future for Bitcoin holders, Hashoni suggested that there could be more accumulation opportunities in the coming weeks, as stakeholders expect at least one minor dip before the halving period. Many anticipate a bullish trend during the halving, similar to the Ethereum merge that took place over a year ago.
He referred to the increase in Ethereum’s price before its Merge upgrade, followed by a temporary decline after the announcement and a rally after the merge. He speculated that the upcoming Bitcoin halving might follow a similar pattern.
Possible Pullback and Market Sentiment
Hashoni warned that the high buying activity from large wallets could potentially lead to a pullback, as whales need sell pressure to accumulate more Bitcoin. He stated, “we are going to see a little bit of polarization.”
Discussing the influence of social trends and market sentiment on the crypto market, he noted that the excitement surrounding BTC has subsided, which has allowed the whales to maintain a positive outlook. Consequently, Bitcoin has seen a resurgence and reached a value of $70,000.
The analyst also highlighted how market sentiment has contributed to the recent positive performance of alternative cryptocurrencies. Many altcoins have seen weeks-long rallies this year until mid-March. For instance, Ethereum saw a more than 80% increase from the end of January until two weeks ago. Solana, Fantom, and FLOKI also saw more than 160%, 300%, and 1000% increases, respectively, during this period.
With the positive shift in social trend and market sentiment surrounding Bitcoin, we could expect to see altcoins recover from their 2-week dip. However, he stressed the importance of making objective decisions in crypto trading rather than blindly following social media noise and buzz, while also acknowledging that social media sentiment can influence a coin’s price.
