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Bitcoin Price Nears $65k as Whales Accumulate After Post-Halving Dip

Published 06/05/2024, 09:15 pm
BTC/USD
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Bitcoin whales continue to accumulate after the post-halving dip, signaling bullish sentiment. Traders advised to monitor $60,000 support level.

In a pivotal moment for the cryptocurrency market, large-scale Bitcoin investors, colloquially known as “whales,” have seized the opportunity presented by the recent price retreat to acquire over 47,000 BTC, valued at approximately $2.9 billion.

This strategic accumulation marks a significant shift in sentiment, suggesting a bullish trajectory for Bitcoin despite the heightened market volatility following the highly anticipated halving event, which reduced the Bitcoin block reward to 3.125 BTC.

Whale Accumulation and Market Impact

According to Ki Young Ju, founder and CEO of CryptoQuant, wallets holding at least 100 BTC have resumed accumulating cryptocurrency, gathering a substantial amount of Bitcoin at current rates. This move by the whales is expected to profoundly impact the market, potentially solidifying Bitcoin’s position and paving the way for further growth.

However, whale accumulation contrasts with the recent trend in spot Bitcoin ETFs. The eleven United States Bitcoin ETFs have recorded nearly $871 million in negative net withdrawals this week, indicating a divergence in investment strategies between institutional investors and high-net-worth individuals.

Bitcoin Price Breaks Through the $65,000 Level

On a macroeconomic level, the Federal Reserve’s dovish stance could boost Bitcoin’s upward momentum. As the central bank maintains an accommodative monetary policy, investors may increasingly turn to Bitcoin to hedge against inflation and diversify their portfolios.

Traders are advised to monitor the $60,000 mark closely, as a move below this critical level could trigger the liquidation of more than $700 million in leveraged long positions across various exchanges. This scenario could lead to increased volatility and potentially exert downward pressure on the cryptocurrency’s price.

As of the most recent data, Bitcoin (BTC) is trading at $65,249.79, representing a 2.26% increase over the past 24 hours. The cryptocurrency has seen a trading volume of $17,810,353,572.05 during this period and is currently being exchanged on 11,024 active markets.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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