Bitcoin Whales Acquire 26,430 BTC Amid Price Dip Below $88,000
Bitcoin’s price declined to $87,081, prompting Bitcoin whales to accumulate 26,430 BTC worth approximately $2.35 billion. The market saw significant ETF outflows and concerns related to macroeconomic factors contributed to the downturn. Analysts remain divided, with some projecting further declines while others foresee possibilities for recovery if key price levels are met.
Bitcoin (BTC) began the week on a downward trajectory, continuing Monday’s steep decline into Tuesday. Following a brief stabilization above $91,000, renewed selling pressure caused BTC to fall to new yearly lows, reaching $87,081 by mid-Tuesday. This decline was accompanied by daily liquidations exceeding $870 million, as reported by Coinglass. The broader cryptocurrency market suffered a significant hit as well, with a total market capitalization decreasing by 8.9% to $3.01 trillion during this period.
Amid this downturn, Bitcoin whales took advantage of the situation to increase their Bitcoin holdings. Analysts from IntoTheBlock reported that large holders acquired around $2.35 billion worth of Bitcoin shortly after the price drop, indicating a strategic accumulation. The analysts commented, “Whales are buying. 26,430 BTC just flowed into whale accumulation addresses, often linked to OTC deals and long-term custody.”
The recent dip in Bitcoin’s value can be attributed to several factors exerting selling pressure. One such factor is the significant ETF outflows, with cumulative withdrawals reaching $649 million this week, as noted by crypto analyst Nic. He further mentioned that a slowdown in institutional “cash and carry” trades could be contributing to the bearish sentiment surrounding Bitcoin’s market performance.
Macroeconomic uncertainties have also added to market pressures. Analyst Nic pointed out that delayed tariffs against Mexico and Canada may have triggered recent sell-offs. Additionally, Bitcoin’s decline beneath the 100-day moving average, a vital historical support level, raises further concerns over its price stability. Based on on-chain data, he suggested potential support around $71,600, correlating with the lower standard deviation of the short-term holder (STH) cost basis.
Arthur Hayes, former CEO of BitMEX, offered his insights on the current market dynamics, insinuating further downside for Bitcoin. He remarked, “Bitcoin goblin town incoming: Lots of $IBIT holders are hedge funds that went long ETF short CME futures to earn a yield greater than where they fund, short-term US treasuries,” highlighting possible liquidation of positions as Bitcoin’s price declines.
Conversely, some analysts express cautious optimism regarding Bitcoin’s potential recovery. For instance, Darkfost from CryptoQuant observed that the 30-day retail demand indicator has returned to a neutral position at 0%. He noted this change from a previous markedly negative value could precede price rebounds, as prior recoveries were often accompanied by upward price movements.
Another analyst, Rekt Capital, pointed out the necessity of Bitcoin reclaiming the $96,700 level by the end of February. He asserted that closing above this threshold could signal a breakout from a bullish flag formation, potentially paving the way for a renewed upward trend. As per the most recent data, Bitcoin was trading at $87,098, reflecting a 7.60% decline within the last 24 hours.
In summary, the recent decline in Bitcoin’s price has prompted significant accumulation by large holders, despite adverse market conditions. The combined impact of ETF outflows, macroeconomic uncertainties, and technical indicators presents a complex landscape for Bitcoin’s future. While some analysts express skepticism over further declines, others maintain a hopeful outlook for potential recovery if certain price levels are reclaimed.
Original Source: www.tradingview.com
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