Bitcoin whales accumulated $5.4bn worth of BTC in July. This marks the fastest buying spree in a decade. Large holders scooped up over 84,000 BTC last month. That's according to data from IntoTheBlock and Trading View.
The move represents the highest accumulation since October 2014. Back then, Bitcoin hit 11-month lows. Last month's buying was driven by bargain-hunting. Whales pounced when prices dipped below $55,000 in early July.
They also bought during brief pauses as prices recovered to $69,000. This strategic accumulation shows confidence. Big players seem to think the $50,000-$70,000 range won't last forever.
So, why are these whales so bullish? It's all about the Fed. Traders reckon there's an 86.5% chance of a rate cut in September. That's based on CME's FedWatch tool. The current rate is 5.25%-5.50%.
Fed Chair Jerome Powell hinted at a potential cut on Wednesday. But he stressed that economic data needs to back it up. The Fed kept rates steady this time around. No surprises there.
Powell made it clear: a September cut isn't a sure thing. "It's just a question of seeing more good data," he said. They're looking for signs of cooling inflation and a softer labor market.
There's more fueling the bullish sentiment. Stablecoin market cap jumped 2.11% to $164bn in July. That's the highest since April 2022. It suggests new money is flowing into crypto markets.
Recent price swings were partly due to Mt. Gox Bitcoin transfers. The defunct exchange moved $2.5bn worth of BTC on Wednesday. But Bitcoin's price held steady. Traders seem less worried about potential sell-offs now.
Arkham Intelligence reported 33,105 BTC were moved, likely for creditor distribution. Some selling pressure is expected. But most creditors are thought to be long-term holders. Glassdoor, a blockchain analytics firm, noted:
"The profile of the creditors appears to represent one of a HODLer or long-term investor... dampening the magnitude of sell-side pressure across the coming weeks."
Bitcoin's stability amid these big moves is telling. It points to a strong market and enduring confidence. The next few months could be interesting for crypto investors. Keep your eyes peeled.