KEYTAKEAWAYS
- Bitcoin whales accumulated $5.4 billion worth of BTC in July, the highest in a decade.
- The accumulation coincides with expectations of Fed rate cuts and increased stablecoin inflows.
CONTENT
Large Bitcoin holders accumulated over 84,000 BTC last month, capitalizing on market lows. This strategic move, the highest since October 2014, signals confidence amid anticipation of potential Fed rate cuts and stablecoin inflows.
In a significant market development, Bitcoin whales – addresses owning at least 0.1% of BTC’s circulating supply – accumulated over 84,000 BTC in July, valued at $5.385 billion. This accumulation, reported by IntoTheBlock and Trading View Data, marks the highest level since October 2014, when Bitcoin hit 11-month lows.
The strategic buying occurred during early July’s price dip below $55,000 and brief pauses as prices recovered to $69,000. This behavior demonstrates strong confidence in a bullish breakout from the prolonged $50,000-$70,000 consolidation phase.
Several factors contribute to this bullish sentiment. Primarily, there’s anticipation of an upcoming U.S. Federal Reserve interest rate cut. CME’s FedWatch tool indicates an 86.5% probability of a September rate ease to 5.00%-5.25% from the current 5.25%-5.50%. Federal Reserve Chair Jerome Powell’s recent comments suggest a potential rate cut as early as September, contingent on supportive economic data.
>> Also read: Fed Holds Rates at 5.5%; Bitcoin Up 1.4%
Additionally, the market has seen renewed capital inflows via stablecoins. IntoTheBlock data shows the total stablecoin market cap rose 2.11% to $164 billion in July, the highest since April 2022, indicating fresh capital entering the market.
The market has also shown resilience to potential sell-offs. Despite Mt. Gox transferring $2.5 billion worth of Bitcoin on Wednesday, reducing its holdings from $9 billion to $3 billion, Bitcoin’s price remained stable. Arkham Intelligence reported 33,105 BTC were moved, likely to BitGo for creditor distribution. However, Glassdoor’s analysis suggests most creditors are likely long-term holders, potentially mitigating sell-side pressure.
This stability amidst significant movements underscores strong market fundamentals and enduring confidence in Bitcoin’s value, setting an intriguing stage for future price action and investment opportunities.
