Bitcoin Price $60K Breakout Meets Major Accumulation; Is ATH Next Stop?

Bitcoin price holds above $60K as whale accumulation and market anticipation of a potential Fed rate cut fuel bullish momentum.

Bitcoin Price jumped 0.34% during the Sunday trading session, showcasing its sustainability above the $60000 psychological level. The bullish momentum is fueled by whale/institution accumulation and market anticipation of a 0.5% interest rate cut in the September FOMC meeting.

Will Whale Accumulation Drive Bitcoin Price to New ATH?

According to on-chain data tracker Spotonchain, a giant whale has been actively accumulating Bitcoin since August 29th. So far, the large holder has bought around 3,933 BTC (worth $234 Million) from the crypto exchange Binance with the latest withdrawal occurring earlier today at an approximate price of $59,591 per BTC.

Currently, this whale holds 10,491 BTC (valued at approximately $630 million). Typically, such large transactions boast market confidence, as a price rally follows whales/smart money buying.

However, the same whale allegedly dumped 7,790 BTC (around $467 million) around June 27 and July 8, 2024, to Binance at ~$59,953, contributing to a sharp 14% decrease in Bitcoin price.

Anyhow, the business intelligence company Microstrategy has recently increased its Bitcoin holding by acquiring 18,300 BTC worth $1.11 billion. This purchase brings the company's total Bitcoin holdings to 244,800 BTC, as Executive Chairman Michael Saylor revealed.

Along with whale/institutional buying, the Bitcoin price rally to $60000 is more likely driven by market anticipation of the September rate cut.

Following the recent cooling of US CPI and PPI inflation figures, speculation is rising over a potential 50 bps rate cut by the US Fed at the upcoming FOMC meeting. According to the CМЕ FedWatch Tool, there is a 50% probability of a 0.5% rate cut by the US Federal Reserve and the same bet for a 0.25% rate cut.