Decreased trading volumes in both spot and derivative exchanges have been observed in the crypto market due to macroeconomic concerns. The hawkish stance of Federal Reserve officials has raised doubts about the possibility of high interest rates being maintained.
Bitcoin Whales Are Accumulating
Data from the on-chain data platform Santiment reveals that large whales have taken advantage of the Bitcoin price ranging between $61,000 and $64,000 to accumulate BTC in the past 24 hours. Investor groups holding between 1,000 and 10,000 BTC have accumulated over 15,000 BTC, valued at $941 million. Despite the price drop to $62,000, whales have continued their accumulation without interruption. These purchases by whales are significant indicators of a bullish outlook for the entire crypto market. Whales have reached their highest hodl level in the past two weeks, adding optimism to the rise of Bitcoin. However, the market’s uncertainty seems to be prolonging the consolidation process.
Fed’s Stance and Bitcoin Price Outlook
On Wednesday, Boston Fed President Susan Collins made a statement suggesting that interest rate cuts might take longer than anticipated. Collins believes that slower economic growth is necessary in the US to curb inflation, which could lead to a decrease in demand. The hawkish stance of Fed official Neel Kashkari, despite Fed Chairman Jerome Powell’s dovish approach and last week’s economic indicators, has caused anxiety in the crypto market. According to data from the CME FedWatch Tool, it is likely that the US Fed will commence interest rate reductions in September, with the possibility of further cuts of 25 basis points in November and December.
Will Bitcoin Price Decline?
During US trading hours, the Bitcoin price dropped below $62,000 as traders took profits or liquidated their long positions. Today, the BTC price experienced a drop of over 5% and over 1% in the last 24 hours. Furthermore, a decrease in trading volume has been observed in the past 24 hours. Meme tokens, such as dogwifhat (WIF) and Pepe Coin (PEPE), remain the top leveraged altcoins according to Kaiko, a major research firm in the market. This is due to significant accumulation by whales and other investors. Investors in this bull market continue to buy meme coins with the expectation of price increases.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
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