Key Points
- Bitcoin (BTC) price drops to $58k, but shows signs of a potential bullish rebound due to increased activity from large-scale investors.
- Investor behaviour is mixed, with some seizing the opportunity to buy more Bitcoin, while others show fear due to increased market volatility.
Bitcoin’s price has seen a decrease of more than 4 percent in the last 24 hours, bringing it to around $58k during Thursday’s mid-London trading session.
After encountering significant resistance below $62k due to the daily death-cross between the 50 and 200 Moving Averages (MAs), Bitcoin is poised for substantial volatility in the near future.
Investor Behavior Amidst Market Volatility
The crypto market has seen increased volatility following last week’s crash, which resulted in the liquidation of more than $1.6 billion in two days. This has led to increased fear among Bitcoin investors, as evidenced by the fear and greed index dropping below 30 percent, indicating extreme fear of further crypto capitulation.
In response to the recent dip, Bitcoin’s large-scale investors, often referred to as whales and sharks, have shown mixed reactions. For instance, the US government deposited 10k Bitcoins, valued at nearly $600 million, into Coinbase Prime on Wednesday.
Interestingly, despite Donald Trump’s recent pledge to hold and never sell the entire bag of Bitcoins if elected president later this year, the US government sold the 10k Bitcoins. Meanwhile, US spot Bitcoin ETFs saw a net cash outflow of about $81 million on Thursday, led by Grayscale’s GBTC and Fidelity’s FBTC.
However, some whale investors view the current crypto dip as a buying opportunity in anticipation of a potential rally in the near term. For example, Marathon Digital Holdings Inc., a prominent Bitcoin miner, announced that it has secured $300 million via an oversubscribed offering of convertible notes to purchase more Bitcoins.
Whale Activity and Midterm Price Expectations
On-chain data analysis reveals that a bullish whale has withdrawn Bitcoins worth nearly $100 million from Binance in the past 24 hours.
Despite the notable bearish pressures on the crypto market, more than 69 percent of top traders on Binance have gone long on Bitcoin price compared to about 30 percent in short traders. Following the recent US CPI data that shows easing inflation, which suggests an imminent interest rate cut, Bitcoin’s price is expected to rebound to a new all-time high before the end of this year.
