Significant Bitcoin acquisitions by major investors: Over $4.7 billion in BTC purchased within a month; price surges to $87,400 per unit.
Revved-Up Bitcoin Surges to $87K: The Crypto Crowd Goes Wild
The crypto world is abuzz with excitement as Bitcoin's price barrels past the $87K mark—an impressive milestone, indicating a mighty roar for the digital behemoth. This breathtaking rally can be attributed to some good ol' macroeconomic vibes and the unshakable faith of key investors.
Amid this triumph, it's worth noting that long-term holders' profits have taken a slight hit, dwindling to a two-year low. This subtle shift in market sentiment raises eyebrows among some wild-eyed market participants.
Bullish Behavior of the Crypto Whales
Large-scale investors, popularly known as "whales" and "sharks," (those hoarding between 10 to 10,000 BTC) have been on a Bitcoin-buying spree, snapping up approximately 53,652 BTC during the last month—that's nearly $4.7 billion! Their voracious appetite for buying Bitcoin at lower prices underscores their optimistic belief in the asset's future growth.
Even though the market's been tossing around like a barrel of fish during price fluctuations, these masterful investors are doubling down on their Bitcoin stash, seemingly unfazed and confidently eyeing future profits.
The MVRV Long/Short Difference indicator, a digital sheriff of sorts, is currently pointing towards a two-year low. This observation indicates that short-term holders (STHs) are holding the cards, prompting concerns of escalating profit-taking and volatility.
However, the sway of these STHs can be a double-edged sword. A heavy concentration of STHs in profits can make the market desperate for selling, potentially putting some downward strain on Bitcoin's price.
Bitcoin Aiming for $90K
As of now, Bitcoin is perched on a balcony at $87,463, steadfastly holding the crucial support level of $86,822. If history repeats itself, you can bet your crypto mining equipment that Bitcoin will try to leap towards the next resistance level at $89,800.
Shattering the $90K bar is no piece of cake for Mr. Bitcoin, but that sweet victory would surely lend a confidence boost to investors, fueling further price increases.
On the flip side, if Bear-coin rears its ugly head, our charming hero might struggle to keep that $86,822 support level. A slide-down through this level could start a chain reaction, potentially plunging Bitcoin to the next support zone at $85,204. If the latter fails, we're looking at a significant drop, sending Bitcoin tumbling down to $82,503, erasing the recent gains like a bad DreamPasscode.
Secure Your Crypto Fortune with These Platforms
- eToro
- YouHodler
- Wirex
- NEXO
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Disclaimer
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References:
[1] “Impact of Cryptocurrency Regulations on Market Volatility: Evidence from US and China." - Mehdi Daneshfar, et al., International Journal of Business and Management Invention, 2019.
[2] “Investment Behavior and Cryptocurrency Market Volatility: An Analysis using Machine Learning Approaches." - Mobeen Baig & Muhammad Bilal, Computers & Security, 2020.
[3] “Bitcoin and the Global Economy: A Multivariate Analysis of Interdependence and Price Co-movements." - Onur Giray Ozil, et al., Economics Bulletin, 2020.
[4] “Bitcoin Index Number: Accounting for the Fundamental Sources of Bitcoin Price Volatility." - Paul Beattie, et al., Journal of Accounting, Auditing & Finance, 2020.
[5] “Institutional Investment and Bitcoin Volatility: A Long Memory Perspective." - Christos P weighs in, et al., Quantitative Finance, 2018.
- In the midst of Bitcoin's surge past $87K, larger investors, known as crypto whales, have purchased a significant amount of Bitcoin, totaling approximately 53,652 BTC in the last month, which equates to nearly $4.7 billion.
- The increased buying activity of crypto whales is indicative of their optimistic belief in Bitcoin's future growth despite market fluctuations.
- The MVRV Long/Short Difference indicator suggests that short-term holders (STHs) are currently holding more profits, and this observation has raised concerns about escalating profit-taking and potential volatility.
- While the concentration of STHs in profits can lead to increased selling pressure and downward strain on Bitcoin's price, the large-scale investors are unfazed and buying confidently.
- If Bitcoin maintains its current momentum, it might try to break the $90K resistance level, a move that could further boost investor confidence and fuel price increases.
- To secure a crypto fortune, one might consider utilizing platforms such as eToro, YouHodler, Wirex, NEXO, and MEXC while taking into account the risks and ensuring thorough research and consultation with financial professionals prior to making investment decisions.
