The flagship cryptocurrency, Bitcoinseems to be cooling off after months of experiencing a resurgence on the back of the Discover Bitcoin ETF possible endorsement rumors. This has led to concerns that the rally may be over, a theory reinforced by the recent action of the largest holders of the crypto token.
Bitcoin Whales relieve some BTC holdings
In a after on its X platform (formerly Twitter), crypto analyst Ali Martinez underlined a report from the market information platform Santiment, which showed that Bitcoin whales had sold around 50,000 BTC in the past week. This has raised eyebrows as many speculate why these whales are losing some of their Bitcoin holdings.
Coincidentally, these sales follow a similar trend among institutional investors as CoinShares. last weekly report noted that there were small outflows from digital asset funds last week. These funds are said to have seen outflows totaling $16 million. However, if the asset manager’s report rejects something, there should be no cause for concern.
CoinShares said the outflows from digital asset mutual funds are likely linked to profit-taking rather than a turnaround in sentiment. As such, you could also assume that this is the sentiment among the whales that has caused this recent Bitcoin sell-off. This is also very plausible, considering that Santiment recently reported that 89% of BTC’s total supply is profit.
Meanwhile, BTC is seeing an influx of investors as Santiment reported that the number of non-zero Bitcoin addresses reaches 916.8 million. Many seem to be looking to get in the flagship cryptocurrency as the approval of a Spot Bitcoin ETF looms, and the BTC halving approaches.
BTC price at $43,600 | Source: BTCUSD on Tradingview.com
BTC will rise above $50,000 by the end of January
Although BTC appears to be cooling off, there is reason to believe the rally is not over yet as it could rise above $50,000 by the end of January 2024. Crypto financial service provider Matrixport predicts that this will happen on the back of the SEC approving the pending Spot Bitcoin ETF applications.
Matrixport noted that in making this price prediction, they drew parallels with historical examples. One of these examples is the launch of Bitcoin futures by CME Group in 2017. Bitcoin is said to have risen by 196% in a period of six to seven weeks from the time of the launch. They expect something similar to happen again.
The company also expects Bitcoin to breakout before the end of the year. This prediction is also based on historical patterns, as they noted that btc historically sees a price increase between Christmas and New Year. Matrixport had previously predicted that Bitcoin would reach $45,000 between November this year and April 2024.
At the time of writing, Bitcoin is trading around $43,600 facts from CoinMarketCap.
Featured image from CNET, chart from Tradingview.com
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