Bitcoin (COIN: $BTC) has been hovering around $68K for the past few days. However, recent activity could signal a return to a bullish trend, following a slight pullback after it hit a new all-time high in March.
Bitcoin Whales Ramp Up Buying Activity
According to a report by CryptoQuant, whale activity has surged in the past 30 days. The report indicates that BTC whales have been on a buying spree, growing their holdings at current prices.
In March, whales increased their BTC holdings by over 9.8%, a trend that continued in April. By May 1, 2024, the trend had slowed to 4.2%, which coincided with the 20% decline in BTC to below $57K.
Since it bottomed in early May, the accumulation has picked up steam and stood at 5.5% as of Wednesday, May 22. During the early May 2022 dip, whales increased their holdings by around 47K BTC.
A Good Opportunity to Buy Bitcoin
The return to an accumulation of coins by whales signals that it might be time to accumulate BTC. Whales often grow their BTC holdings during bull markets and reduce their holdings during a bear phase. Another factor to consider is the looming federal rate cuts, with most buying activity occurring when interest rates are low.
An important issue that could push BTC prices is the shift in regulation. Following the approval of Bitcoin ETFs in January, the SEC is on a path to approval of Ether ETFs. Once it happens, it could provide a bump for BTC prices.
Growing use cases are another important consideration. A good example is the Ordinals protocol, which lets users store and trade NFTs on the Bitcoin blockchain. The Ordinals market has already gained popularity, reaching a daily trading volume of around $3.42 million as of mid-May.
Finally, the coming election could play a huge role in the future of BTC. President Trump has already signaled his support for the crypto industry. A win for Trump could lead to a surge in BTC prices shortly after the election in anticipation of policy changes.
Bitcoin Price Trend
Bitcoin is currently priced at $68,479.05, down 0.98% in the past 24 hours and up 2.02% over the past week. Based on the realized cap, the amount of funds invested by whales has doubled from around $57 billion to around $122 billion since the start of 2024. A realized cap refers to the price of the coins at the time of purchase, not their current price.
Is Bitcoin (BTC) Worth Investing In Right Now?
Bitcoin has had a great run since the start of 2024. However, the price stagnated in March and started declining in April, driven by geopolitical tensions and the sustained interest rates by The Fed. However, the prices have been inching higher recently as whales accumulate BTFC holdings. On a long-term basis, adding Bitcoin to your portfolio could potentially pay off. However, crypto investments often come with a high degree of volatility compared to traditional investments.
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