According to CoinDesk: In July, large Bitcoin holders engaged in significant accumulation, adding over 84,000 BTC, worth approximately $5.4 billion, according to data from blockchain analytics firm IntoTheBlock and TradingView. This marks the largest single-month increase in BTC holdings since October 2014. The accumulation was driven by bargain hunting during the early July price dip, with Bitcoin prices fluctuating between $50,000 and $70,000.

Bitcoin: Large holders' net inflow in July. (IntoTheBlock, TradingView

These large holders, who control at least 0.1% of Bitcoin's circulating supply, capitalized on two-way price volatility. They strategically accumulated BTC during the dip to under $55,000 and paused briefly as prices recovered to $69,000. By the end of July, Bitcoin had achieved a modest 3% gain, according to CoinDesk data. The activity suggests a strong belief among these holders that the consolidation phase will eventually lead to a bullish breakout, continuing the rally from $16,000.

Analysts are optimistic about Bitcoin's future price movement. Jag Kooner, Head of Derivatives at Bitfinex, noted that a potential rate cut by the Federal Reserve in September could boost market liquidity and favour risk assets like Bitcoin. On Wednesday, Federal Reserve Chair Jerome Powell mentioned that interest rates could be lowered as soon as September, provided that economic data supports such a move. The central bank has maintained its benchmark interest rate in the 5.25%-5.50% range.

ING analysts expect the Fed to transition from a restrictive to a less restrictive monetary policy starting in September, with further rate cuts potentially occurring in November and December. This shift could positively impact Bitcoin and other cryptocurrencies, as investors seek higher returns outside traditional assets.

Additionally, the market has seen a renewed influx of capital via stablecoins. According to CCData, the total market capitalization of stablecoins rose by 2.11% to $164 billion in July, the highest since April 2022. This increase reflects new capital entering the markets, supporting the positive price action of digital assets.

Kooner highlighted that the diminishing impact of negative news has bolstered market confidence. Despite events like the Mt. Gox distribution, the German government's sale of Bitcoin, and significant on-chain movements, Bitcoin's price has remained relatively stable, further assuring bullish sentiment among investors.