Altcoin
Bitcoin (BTC) Whales with 10+ BTC Holding a Touch at Two-Year Highs, BTC Price Rise Ahead?
As the price of Bitcoin (BTC) continues to hover near $66,000, whale activity is increasing on the back end. As of this writing, BTC is trading at $66,184 with a market capitalization of $1.304 trillion.
Bitcoin Whale holdings hit two-year high
As reported by on-chain data provider Santiment, the Bitcoin whale walletThose holding 10 or more Bitcoins have now managed their holdings level two years ago, in 2021. During this period, the market capitalization of Bitcoin increased by 226%.
Many in the cryptocurrency community suspected that the bankrupt exchange FTX was actually suppressing the price of cryptocurrencies during the second half of 2022. Ever since the collapse of the FTX cryptocurrency exchange in November 2022, there has been a notable correlation between ownership of these Bitcoin largest wallets and the price movement of BTC.
Courtesy: Santimento
However, despite all this whale activity, the price of Bitcoin has continued to remain under pressure and does not have enough stimulus to push it above $70,000.
The price of BTC will not increase until the Fed cuts rates
although the Bitcoin price flirted near its all-time highs, most altcoins traded below the highs, thus suggesting caution among market participants. According to renowned crypto analyst Benjamin Cowen, the hype about the upcoming altcoin bull run is premature.
He also believes that until the Federal Reserve cuts interest rates again, a significant rally in cryptocurrencies is unlikely. Historically, the altcoin market has performed better following these rate cuts. Cowen stated:
“The decline of most altcoins is reflected in the decline in the advance/decline index, which echoes the period before the Fed cut rates in 2019. This index saw a sharp decline before the Fed began its rate cuts in July of that year. It is essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a Fed interest rate cut.”
He also added that investors must maintain caution in purchasing altcoins during the period of high bitcoin dominance.