15h06 ▪
3
min of reading ▪ by
The bitcoin market has recently gone through weeks marked by fear and uncertainty, with a notable drop in prices. Amid this turbulence, giants like Binance and other savvy investors are betting on a promising future for bitcoin. They have taken advantage of the situation to strengthen their BTC reserves. Their strategic moves indicate a long-term optimistic outlook for the leading crypto.
Strategic accumulations during a downturn
In recent weeks, the bitcoin market has experienced volatility marked by panic selling. This situation was exacerbated by the liquidation of a significant stock of bitcoins by German authorities and the repayment of Mt. Gox debts. In this climate of uncertainty, Binance took a direction opposite to the general panic. Instead of selling, the crypto exchange increased its reserves by 41,000 BTC, bringing its total to over 620,000 BTC.
At the same time, other exchanges such as Bitfinex and Upbit also increased their stocks, adding 13,000 and 5,000 BTC respectively. Outside of these platforms, whales, these large bitcoin holders, also took advantage of the price drop to accumulate more BTC. Ki Young Ju, founder of CryptoQuant, revealed that these holders acquired 85,000 BTC over the last 30 days at an average price of $57,000.
Analysis and outlook for the bitcoin market
The increase in bitcoin reserves by crypto exchanges and whales shows growing support for the crypto asset even during periods of volatility. These strategic moves could very well herald the beginning of the longest bull run in bitcoin’s history, according to some CryptoQuant experts.
Despite significant sales by the German government and liquidations related to Mt. Gox, bitcoin has rebounded, reaching $64,000 at the time of writing. Some experts even predict that the crypto asset could reach a new all-time high by the end of the month.
As the number of wallets holding at least 10 BTC continues to increase, investors might witness a significant market transformation. The coming weeks will be crucial to assess if this accumulation phase marks the beginning of a renewed period of prosperity. Investors must nevertheless remain cautious and monitor new developments to navigate effectively in this constantly evolving financial landscape.
Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!
Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
