The recent price rises of over $26,000 have relieved traders and holders, and on-chain data reveals that retail customers have been piling up on Bitcoin throughout the recent fall.
After an unstable week in the cryptocurrency market (involving the SEC, Binance, and “crypto” securities), the Federal Reserve paused rate hikes. It kept the US fund rate within the 5% to 5.25% zone, increasing market uncertainty and sending the price of Bitcoin down below $25,000.
Retail bitcoin investors, those owning 0.01 to 1 BTC, stepped in to purchase the drop, and the cryptocurrency market has since recovered.
Interestingly, retail investors’ dip-buying behaviour is on par with that seen following the Silicon Valley Bank (SVB) collapse earlier this year but lower than that seen after the FTX collapse, when Bitcoin’s price dropped below $16,000.
Meanwhile, “whales” have been on the move alongside the increasing activity of regular Bitcoin purchasers. A “crypto whale” is an address that stores a big quantity of cryptocurrency.
Someone on Twitter also said that a person who had 50 BTC (then worth around $1.2 million) but had been inactive since 2010 had lately transferred his coins.
These coins were part of a batch mined in June of 2010 and had been in storage until recently. Another idle Bitcoin wallet, this one for ten years, moved $7.8 million in BTC to a new wallet, continuing the pattern. After more than 11 years of inaction, another long-term holder transferred $11 million worth of Bitcoin.
At this critical juncture in Bitcoin’s price and the cryptocurrency market, investors wonder what’s behind the recent big price swings. It is well-known that the subsequent trading activity may affect Bitcoin’s supply and demand dynamics, possibly having a short-term effect on pricing.
“Bitcoin has recovered from its June 14 losses to trade at around $26,500 as of June 18. Since stores are buying the dip, we might see a price increase near $30,000 in the coming days.”
Although Bitcoin is still under selling pressure, investors should watch how fundamental developments, such as the SEC’s actions against Binance and Coinbase, might affect cryptocurrency prices.
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