Decrease in Bitcoin Large-Scale Ownership: Only 3.52 Million Bitcoin Remain
In the world of cryptocurrency, Bitcoin is currently trading around the significant milestone of $116,493, according to the latest data. This price surge has seen buyers defend the $114K mark, but a decisive barrier at the $120K level persists.
The Federal Reserve's upcoming interest rate decision is expected to shape the coming weeks, as large investors are historically sensitive to such outcomes. Rate adjustments can directly influence risk appetite and liquidity conditions across financial markets, potentially impacting Bitcoin's trajectory.
However, recent developments on the Bitcoin blockchain have raised concerns. Top analyst Maartunn has highlighted these concerns, with insights suggesting that whale holdings have dropped significantly in recent days. This decline represents a loss of 108,000 Bitcoins, or approximately $12.7 billion, in just 17 days.
This reduction in whale exposure may signal profit-taking after Bitcoin's recent surge or preparation for volatility tied to macroeconomic uncertainty. It's important to note that selling pressure emerges each time Bitcoin approaches the $120K region, adding another layer of uncertainty to the market.
Despite these concerns, a potential breakout could occur if Bitcoin manages to close above the $123K mark. If successful, the next upside target for Bitcoin could lie near $130K-$135K. On the other hand, a break below $110K could weaken the structure and potentially drag the price towards the $102K-$105K support range.
The market's broader volatility continues, with no clear trend emerging as yet. However, many analysts view a 25bps cut as a constructive and bullish signal. This perspective is further supported by the 50-day Simple Moving Average (SMA) trending well above the 100-day and 200-day SMAs, reflecting strong medium-term momentum.
Elsewhere in the cryptocurrency world, there have been signs of accumulation. Whales have withdrawn over $188 million worth of Ethereum from exchanges, suggesting a fresh accumulation wave.
Despite extensive searches, no publicly available, specific reports or verified information about particular institutions accumulating large amounts of Bitcoin or holding it in custody have been found in the last 17 days. This lack of institutional buying could contribute to the market's uncertainty.
In conclusion, while Bitcoin is currently trading at record highs, the path ahead remains uncertain. The Federal Reserve's interest rate decision and onchain developments are key factors to watch in the coming weeks. As always, it's essential for investors to stay informed and cautious in this dynamic market.
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