$BTC Since Donald Trumpās inauguration on January 20th, Bitcoin (
$BTC ) has traded within a range of $101,000 to $110,000, showing relatively stable price activity. However, behind the scenes, Bitcoin āwhalesāāmajor holders of the cryptocurrencyāhave quietly resumed accumulation, according to a recent report by CryptoQuant.
Whales Are Back in Action
The report highlights a notable uptick in Bitcoin whale activity, with a significant rise in their holdings. On January 17th, the monthly percentage increase in whale BTC holdings surged by 2%, marking the largest growth since mid-December. This followed a dip of -0.25% just three days earlier on January 14th.
By January 24th, whales collectively held 16.4 million BTC, up from 16.2 million BTC on November 4thāa clear indication that major players are capitalizing on the current price range.
Decline in Selling Pressure
In addition to the rise in whale accumulation, the selling pressure on Bitcoin has significantly diminished since December. During Bitcoinās climb to nearly $100,000 in December, daily realized gains reached $10 billion. However, this figure has now dropped to around $2ā3 billion in January, signaling that many market participants are holding their positions instead of cashing out.
Spot demand for Bitcoin has also seen a reduction, with demand growth slowing from 279,000 BTC in early December to 75,000 BTC currently. While this decline raises questions about immediate upward momentum, it also reflects a consolidation phase in the market.
Regulatory Developments and Strategic BTC Discussions
Interestingly, a newly formed Working Group is tasked with proposing a federal cryptocurrency regulatory framework within six months. This includes considerations for stablecoins and a potential national digital asset reserve, sparking speculation about the United States possibly establishing a strategic Bitcoin stockpile.
Whatās Next for Bitcoin?
Despite the slowing on-chain demand, crypto analysts remain optimistic about Bitcoinās potential for another price rally.
Price Predictions:
A Bitfinex report suggests that Bitcoin could hit $200,000 by mid-year, even accounting for minor corrections.
Another analysis projects that BTC could surge to $249,000 during Trumpās term.
Technical indicators, such as a cup-and-handle pattern, hint at a potential price target of $275,000 in the coming months.
Current Market Performance:
Bitcoin is currently trading at $106,074, up 0.1% over the last 24 hours.
Conclusion
Bitcoinās steady price range since Trumpās inauguration, combined with increased whale accumulation and reduced selling pressure, sets the stage for potential bullish momentum. While on-chain demand has slowed, the underlying fundamentals, along with optimistic projections, suggest that BTC could be gearing up for another significant rally. As always, strategic planning and informed decision-making remain crucial in navigating the evolving crypto market.
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