Bitcoin heavyweights' response to the unveiled U.S. TÜFE data: Insights explored.
Cryptocurrency Insights: Big Bitcoin Players Aren't Cashing Out, and Here's Why
Currently, Bitcoin is standing tall at around $107,865, flirting with the $110,000 mark in recent moments. Surprisingly, despite hovering just 2.82% short of its record-breaking all-time high (ATH) of $111,000, whales, the large Bitcoin holders, aren't in a rush to cash out.
According to CryptoQuant data:
"Whales aren't cashing in at these price levels. They're biding their time for more advantageous market conditions, similar to a 'balloon' scenario for massive sell-offs."
This intriguing observation hints that Bitcoin still has room to grow, with more significant levels on the horizon.
No Intense Selling Pressure on Exchanges
On dominating exchanges like Binance, increased Bitcoin inflows are usually a sign of selling intentions. However, as per CryptoQuant analyst Darkfrost, as of June 11, whale inflows are a shy $3 billion – way below the $5.3 billion recorded in 2021 and the $8.45 billion seen in previous cycles.
This indicates:
- Whales aren't offloading Bitcoins,
- The price surging trend continues,
- Institutional investors are optimistic too.
Inflation Dipping, Rate Cuts Expected
The US May 2022 CPI data unveiled a slowdown in inflation:
- Month-over-month CPI: +0.1% (anticipated +0.2%)
- Core CPI: +0.1% (expected +0.3%)
In light of this, markets are predicting two interest rate cuts by the Fed in July and December. A conducive interest rate environment is beneficial for risky assets, such as Bitcoin.
Golden Cross Signal: Technically Green
The weekly chart has formed a Golden Cross pattern, with the 50-day moving average surpassing the 200-day moving average. This undoubtedly represents a bullish signal for a prolonged uptrend.
Analyst Jelle pointed out that the price has moved past the retest phase following the recent dip and is now on an uptrend.
The influential BitMEX founder, Arthur Hayes, foresees a significant boost in risk assets, including Bitcoin, if the Bank of Japan (BOJ) decides to restart its quantitative easing program.
As a result, whales are remaining tight-fisted, BTC inflows to exchanges are scant. Inflation is decreasing, interest rate cuts are imminent. The Golden Cross technical signal is backing the rally. Macroeconomic conditions and market sentiment are setting the stage for a new rally.
While volatility remains high in Ethereum and altcoins, Bitcoin is testing record highs. The next target is $111,000 and beyond.
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Additional Insights:
- Whale Behavior: Whales, with substantial Bitcoin holdings, are generally strategic players in the market. Currently, they're holding back from selling, which is usually a bullish sign as large holders often sell only when they believe a top is imminent[1][2]. However, some of the largest whales may be lightening their loads, a transitional phase that could lead to temporary market corrections or consolidation[1][3].
- Market Dynamics: A lower inflow of Bitcoin to major exchanges and the reluctance of whales to sell could stabilize the market, potentially providing a base for further growth, particularly if fresh buyers enter the market and demand remains strong[2][3].
- Given the lower inflow of Bitcoin to major exchanges and the reluctance of whales to sell, an indication of stable market conditions could be observed.
- The strategic behavior of whales, who are currently holding back from selling, suggests a bullish market sentiment, implying that Bitcoin still has potential for growth beyond the current record highs.
