Whales Take Action! What’s next?

As BTC volume on exchanges increases, the price of Bitcoin may fall under selling pressure. Analysts are showing a bearish bias for the Bitcoin forecast. Meanwhile, some whales are transferring their assets. Here are the details…

Bitcoin whales abandon their holdings, 15,000 BTC moved to Kraken

Purchased eight years ago by a major wallet investor, $290 million worth of Bitcoin has arrived in exchange wallets. The entry of 15,000 BTC into Kraken from a Bitcoin whale this week is a clear example of BTC dumping by whales. Long-term Bitcoin holders are losing their holdings. Whales moved their BTC to wallet exchanges as the asset’s price dropped below the key $20,000 level. The $20,000 level has significance for Bitcoin as a major psychological barrier to the asset. This is close to Bitcoin’s 2018 high and a price level where most major wallet investors and institutions have snatched BTC.

Bitcoin price traded close to the $20,000 level on September 6 before the drop. This is close to the asset’s highest price point in the 2018 bull run. After reaching the $20,000 level, the Bitcoin price fell 5% alongside the increase in the stock-to-whale ratio. The “stock whale rate” is an indicator that measures the ratio between the total of the top ten Bitcoin transactions to exchanges and the total stock market listings. This makes it an important indicator of Bitcoin price trend.

There was a sharp increase in the stock market whale rate before a 5 percent drop in Bitcoin price on September 6. The rate is still high and this is considered typical bear market behavior. Phoenix Ashes, a Bitcoin analyst and trader, believes that BTC could drop to the $18,600 level. Recovering $19,500 is key to Bitcoin’s long-term recovery.

Bitcoin forecast from Bloomberg analyst Mike McGlone

Bloomberg analyst Mike McGlone has labeled Bitcoin (BTC) a “mature” “wildcard” that will outperform after traditional stocks finally bottom out. In a post on Linkedin and Twitter on September 7, McGlone explained that while the United States (US) FED tightening is likely to determine the direction of the stock market, Bitcoin remains a “wildcard” that could beat the trend:

The commodity strategist shared more details in a September 7 report, stating that Bitcoin is poised to recover strongly from the bear market despite a “strong headwind” towards higher-risk assets. The report states that while Bitcoin will follow a similar trend to treasury bills and gold, Ethereum (ETH) “may have a higher correlation with equities.” cryptocoin.com As we reported, the Fed’s incremental quantitative tightening comes amid several major rate hikes throughout 2022. The latest increase constitutes a 75 basis point increase on July 27.

It is not known exactly when the Fed’s quantitative tightening will end. According to a Bloomberg article published in August, some economists predicted that the endpoint would begin at “some point in 2023.” Quantitative tightening is a contractionary monetary policy tool used by central banks to reduce the money supply and liquidity level in an economy, which can reduce cross-market spending such as stocks. But despite the analyst’s bullish trend, other experts believe that Bitcoin and equity markets are actually becoming more correlated than before.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!