Key Points
- Bitcoin’s price is showing signs of a bullish rebound, driven by increased on-chain activities by whales.
- Despite some fear in the market, the supply of Bitcoin on exchanges has dropped, indicating rising investor confidence.
Bitcoin (BTC) is leading a rebound in the total crypto market cap, which has risen approximately 2% to surpass $2.16 trillion. On Monday, Bitcoin’s price rallied over 3%, reaching a high of around $59,343, effectively erasing the losses seen at the start of September. This rally was mirrored by most altcoins, including Ethereum (ETH), BNB, and Solana (SOL).
However, there is still some uncertainty surrounding Bitcoin’s price. The crypto fear and greed index for Bitcoin is still hovering around 26%, indicating extreme fear, despite the price rebound above $58K.
Activities of Bitcoin Whales
Amid economic uncertainties, on-chain data reveals mixed reactions from different whale investors, who are likely institutional traders. For example, US-based spot Bitcoin ETFs saw a net cash outflow of about $46.53 million on Monday. Consequently, these ETFs have experienced five consecutive days of cash outflows, led by Grayscale’s GBTC and ARK 21Shares Bitcoin ETF (ARKB).
On-chain data also reveals that a whale investor withdrew 1,100 BTCs, worth over $64 million, from Binance in the last 24 hours. This investor currently holds a total of 3,823 BTCs, valued at approximately $227 million.
Another whale investor, who sold nearly half a billion dollars worth of Bitcoins in July, has started accumulating more coins from Binance recently. Specifically, this investor withdrew 1000 BTCs, valued at over $58 million, from Binance. As a result, this investor now holds about 8,559 BTCs, worth around $494 million.
Market Outlook
The supply of Bitcoin on all crypto exchanges has dropped from 2.44 million on August 27, to about 2.35 million at the time of writing. Despite the low bullish sentiment, this significant drop in Bitcoin’s supply on centralized exchanges suggests that investor confidence is rising.
The crypto market is expected to regain bullish momentum in the fourth quarter, particularly if the US Fed implements the much-anticipated interest rate cut. With the upcoming US elections and changing regulatory landscape in major jurisdictions like Russia and India, the next bullish phase could push Bitcoin’s price above its all-time high.
From a technical standpoint, it appears that Bitcoin’s price could be preparing for a parabolic expansion period, similar to the one seen after the 2020 Black Swan event.
