Wealthy investors are currently buying large amounts of Bitcoin again, after the price started to decline towards the end of 2024. According to Cauê Oliveira of Blocktrends, whales bought more than 34,000 Bitcoin, worth more than 3 billion dollars.
Wealthy investors are getting back in
What’s striking about this buying frenzy, according to Oliveira, is that it comes after wallets holding between 1,000 and 10,000 Bitcoin dumped approximately 79,000 BTC onto the market in the week after December 21, the day after Bitcoin reached its peak of $108,000 on December 17.
That dump naturally followed the relatively strict expectations that the US central bank shared on December 18 after its last interest rate meeting. The Fed made it clear that they expect to make only two interest rate cuts before 2025.
As a result, the Bitcoin price fell by 15% and according to Oliveira, major players took advantage of that drop. They started accumulating Bitcoin below $95,000, and have now purchased more than 34,000.
Another disappointment
This week started with another setback for Bitcoin, in the form of strong macroeconomic data from the United States.
The labor market is proving to be a lot stronger than expected, which means that interest rate cuts from the US central bank will probably take even longer.
But we don’t have to worry about that too much, because in principle a strong American economy is exactly what Bitcoin needs to continue its bull market.
A recession in the United States would of course be completely disastrous for the bull market. In that respect, it is not very bad news that the labor market in America is so strong.
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Source: https://newsbit.nl/whales-kochten-34-000-bitcoin-sinds-de-december-dump/
