Bitcoin (BTC) experienced a significant correction this week and has withdrawn more than 10% from its all-time highlights above $ 124,000. Despite this decline, many remain optimistic about the potential of the cryptocurrency for further profit in the coming months.
David Bailey, CEO of Bitcoin Magazine and a Crypto advisor President Donald Trump has attributed the recent price fluctuations to the activities of major investors, usually called ‘whales’.
Bitcoin sale caused by whales?
In recent social media after On X (formerly known as Twitter) Bailey pointed out that two prominent whales are responsible for the recent sale, reportedly liquidated 80,000 and 120,000 BTC respectively.
Interesting that newsbtc reported Last week that, despite record current in Bitcoin-exchange-related funds (ETFs) and growing interest from public companies, Binance can be one of these whales that orchestrate the sale.
Defitracer suggested that Binance may use a market maker, winter mute, to perform strategic transactions, creating a bearish trend that could follow retail investors. With this strategy, Binance can benefit from liquidations in the Futuresmarkt.
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Add a new layer to current market dynamics, recently data analysis company Arkham made public That a whale with more than $ 5 billion in Bitcoin has started buying Ethereum (ETH), which moves to a new wallet for $ 1.1 billion BTC to facilitate these transactions.
Although Bailey did not announce the identities of the whales involved, he indicated that one is already ‘down’, while the other is halfway through a similar fate.
This could suggest that as soon as this sale was concluded, the Bitcoin price could regain its momentum, making Bailey’s objective of $ 150,000 per coin possible, which would mean a significant increase of 36% compared to the current price levels.
Public companies now have more than 6% of BTC’s offer
In addition to the alleged whale activity that Bitcoin’s upward trend has suppressed, the growing involvement of listed companies in the cryptocurrency market has an impact on its price stability.
According to For JPMorgan Global Market strategist Nikolaos Panigirtzoglou, business treasury now has more than 6% of the total range of Bitcoin, which acts as a form of quantitative relaxation of the private sector for the crypto markets.
The analyst noted that the increase in Bitcoin purchases through company treasures has led to a decrease in the volatility of the cryptocurrency, which could ultimately make it active more attractive for investors.
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Panigirtzoglou emphasized this alone in July public companies such as Strategy (Previously micro strategy), was good for almost two-thirds of Bitcoin purchases from large buyers, including listed funds and government entities.
He suggests that this inflow of institutional investments can reform the Landscape of Bitcoin and trade, because reduced volatility can improve the attractiveness of BTC as an investment alternative, in particular compared to gold.
At the moment the leading cryptocurrency is traded at $ 110,900. This represents a slight increase of 2% in the last 24 hours and an increase of 90% years to date.
Featured image of Dall-E, graph of TradingView.com
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