Bitcoin whales remain bullish and are making massive purchases from DailyCoin

Bitcoin whales remain bullish and make massive purchases

  • Purchases for $ 940 million in BTC this week suggest a bullish reversal in the cryptocurrency, although the coin has once again fallen below the $ 50,000 mark.
  • Companies that own their balance sheets account for 8% of the total supply of cryptocurrency in circulation.
  • One of the companies that bought the most BTC after the price drop was MicroStrategy, which amassed an additional $ 177 million in Bitcoin.
  • Hedge funds predict that the price of Bitcoin will hit $ 100,000 by the end of the year.

Despite falling below the $ 50,000 psychological barrier, big investors and whales added an additional 20,000 BTC to their accounts, suggesting optimism in further rises in the asset and betting the big pockets on a new uptrend.

Whales, which own crypto assets in the 100-10,000 BTC range, took advantage of the price crash to make massive purchases and increase their stocks. In the past 24 hours, these traders have added $ 940 million in Bitcoin to their portfolios.

Market analysts often see such movements by large traders as a signal of the future strength of the digital currency. In other words, the whales are believed to be forecasting a bullish outlook for BTC in the coming weeks or months.

Another sign of the possible price development of Bitcoin are the institutional purchases of the cryptocurrency. US business news service MicroStrategy, listed on the New York Stock Exchange, acquired a total of 3,907 BTC at an average of $ 45,000 apiece.

Including the recent purchase of $ 177 million, the company now owns $ 2.9 billion in BTC. The company’s average purchase value of BTC is $ 26,769.

Forecasts of the Fed’s impact on the market

This week’s bullish sentiment on cryptocurrencies and stocks appears to have faded on Thursday. The announcement of a possible reduction in government bond purchases for September by the chairman of the Federal Reserve Bank of Dallas, Robert Kaplan, has hit the market.

For the past 24 hours, Bitcoin has been trading at around $ 47,000, down about 4% from its peak price. CoinDesk analysts believe the retracement price could stabilize between $ 42,000 and $ 45,000.

On the downside

  • The inside information processed by some companies could be a determining factor in betting on BTC.
  • BTC corporate holdings have increased this year, as has their usage. The companies that have the cryptocurrency on their balance sheets manage 8% of the total supply of cryptocurrency in circulation (1.66 million bitcoin).

According to a Crypto Parrot poll of 55 cryptocurrency hedge funds, 65% of those funds are not only optimistic about the future of BTC, but one in five predict that Bitcoin will cost between $ 100,000 and $ 150,000 by December.

Why should you care?

FXStreet analysts believe Bitcoin will stabilize at $ 57,000 before a new uptrend, regardless of whether the current downturn continues or not.

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