Bitrabo Editorial
Bitcoin is currently facing challenges, reflecting two weeks of price fluctuations. Despite a positive trend in September, October started poorly for investors, with Bitcoin dropping from around $66,000.
At present, Bitcoin is recovering from a dip below $60,000 that occurred on October 10. However, buyers need to demonstrate their control over the market.
Large Investors Accumulate 1.5 Million BTC Over Six Months
In addition to fundamental analysis, monitoring on-chain data can provide insights into market direction. One analyst shared on X, pointing out that large investors, known as whales, might be benefiting from lower prices to gather Bitcoin.
Over the past six months, whales holding a minimum of 1,000 BTC have added 1.5 million BTC to their holdings. This accumulation could indicate a bullish outlook as these investors continue to buy amidst challenging market conditions.
Since March, peaking at $73,800, Bitcoin has been on a downward trend, creating lower lows which weaken traders’ fears of missing out. The previous all-time high stands as a significant resistance point that needs to be surpassed for Bitcoin to start a new upward trend.
In the near future, buyers must successfully overcome resistance levels at $66,000, $70,000, and especially $72,000. A price increase supported by higher trading volumes could align with the optimism of whales and potentially uplift the overall market.
Increasing Inflation and Lower Interest Rates May Boost Demand
Several elements might influence Bitcoin’s price in the weeks ahead. Recent statistics indicate that inflation in the United States has reached 2.4%, slightly above the anticipated 2.3%. Typically, risk-tolerant investments such as Bitcoin thrive in inflationary climates.
Alongside rising inflation, many central banks are further reducing interest rates. Following the September cuts, the U.S. Federal Reserve plans to lower rates more significantly in the coming months and into early 2025.
Central banks in regions like the European Union, the UK, and China are also lowering interest rates. As a result of this economic environment filled with inexpensive money, global liquidity will increase, likely leading to more investments in Bitcoin and other valuable assets. Thus, there is a strong possibility that prices will reflect trends observed in the first quarter of 2024.