Author: Jesse Coghlan, CoinTelegraph; Translated by: Wu Zhu, Golden Finance.
Blocktrends analysts stated that after Bitcoin's price hit a six-figure historical high, Bitcoin whales have started to buy this cryptocurrency in large amounts again.
Cauê Oliveira, head of research at Blocktrends, wrote in a CryptoQuant post on January 8 that institutional investors have accumulated over 34,000 Bitcoins, currently valued at $3.2 billion, which provides buying pressure for Bitcoin's current recovery.
Oliveira explained that within a week after December 21, wallets holding 1,000 to 10,000 Bitcoins sold off 79,000 Bitcoins, while days earlier, the Federal Reserve's rate cut caused Bitcoin's price to peak above $108,000 on December 17, ultimately 'resulting in a 15% pullback.'
He added that 'large players have taken advantage of this integration,' starting to break down large trades into multiple smaller orders, buying when the Bitcoin price was below $95,000.
Following a sell-off of nearly 80,000 BTC at the end of December, the seven-day balance change for Bitcoin has turned positive. Source: CryptoQuant
As of this writing, Bitcoin is trading at around $94,900, down about 2.3% on the day along with the broader cryptocurrency market, as U.S. employment and economic data crushed hopes for further rate cuts at the end of January.
Bitfinex analysts stated in a market report on January 6 that the selling liquidity in the Bitcoin market 'is rapidly shrinking,' and the worst downward pressure on its price may have passed.
However, analysts predict that Bitcoin could hit an all-time high this year, driven by the pro-crypto policies of incoming U.S. President Donald Trump and the country's adoption of Bitcoin.
Matt Hogan, a research analyst at Fidelity Digital Assets, wrote in a paper on January 7 that the company expects 'more countries, central banks, sovereign wealth funds, and government treasuries to seek to establish strategic positions in Bitcoin.'
Blockware analysts stated at the end of last month that in the worst-case scenario, Bitcoin reserves in the U.S. could push its price above $150,000, while in the best-case scenario, this cryptocurrency would rise above $400,000.
