Whales Continue to Accumulate Bitcoin Despite Price Fluctuations

Whales Continue to Accumulate Bitcoin Despite Price Fluctuations

In the crypto market, macroeconomic concerns have led to a decline in both spot and derivative exchange trading volumes. The Federal Reserve's hawkish stance has raised questions about the potential for sustained high interest rates.

Bitcoin Whales Are Buying

On-chain data from Santiment reveals that despite Bitcoin's price fluctuating between $61,000 and $64,000, large whales have seized the opportunity to accumulate BTC over the past 24 hours.

Investor groups holding 1,000 to 10,000 BTC have amassed over 15,000 BTC, valued at approximately $941 million. Even as the price dipped to $62,000, whales continued their relentless accumulation.

These whale purchases lend credence to a bullish outlook for the broader crypto market.

Whales Reach Highest Hodl Level

Over the past two weeks, whales have reached their highest hodl level, adding optimism to Bitcoin's upward trajectory. However, ongoing market uncertainty appears to be prolonging the consolidation process.

Fed and Bitcoin Price Outlook

Boston Fed President Susan Collins stated on Wednesday that interest rate cuts could take longer than anticipated. According to Collins, the US economy requires slower growth to curb inflation, which could lead to a decline in demand.

Despite Fed Chairman Jerome Powell's dovish approach, hawkish comments from Fed official Neel Kashkari and economic data observed last week have created anxiety in the crypto market.

Data from the CME FedWatch Tool suggests that the US Fed is likely to begin reducing interest rates from September, with further cuts of 25 basis points possible in November and December.

Will Bitcoin Price Drop?

As traders take profits or liquidate long positions, the Bitcoin price fell below $62,000 during US trading hours. BTC has experienced a drop of over 5% today and over 1% in the past 24 hours. Trading volume has also decreased significantly over the same period.

According to Kaiko, a leading market research firm, meme tokens remain the most heavily leveraged altcoins, driven by substantial accumulation by whales and other investors.

In this bull market, investors continue to purchase meme coins led by dogwifhat (WIF) and Pepe Coin (PEPE), anticipating their price appreciation.