Bitcoin (BTC) Whales With 10+ Holding BTC Touch Two Year-High, BTC Price Rally Ahead?
Highlights
- On-chain data reveals that wallets holding 10 or more Bitcoins have matched their holdings from 2021.
- Crypto analyst Benjamin Cowen cautions that the excitement for an imminent altcoin bull run.
- Bitcoin or altcoin rally won't kickstart until federal rate cuts, he said.
While the Bitcoin (BTC) price continues to flirt around $66,000, whale activity has been rising in the back-end. As of press time, BTC is trading at $66,184 with a market cap of $1.304 trillion.
Bitcoin Whale Holdings Touch Two Year-Highs
As reported by on-chain data provider Santiment, the Bitcoin whale wallets holding over 10 or more Bitcoins have now managed their level of holdings two years ago back in 2021. During this period, the Bitcoin market cap surged by 226%.
Many in the crypto community have been suspecting that bankrupt exchange FTX was effectively suppressing the crypto price during the second half of 2022. Ever since the collapse of the crypto exchange FTX in November 2022, there’s been a notable correlation between the holding of these larger Bitcoin wallets and the BTC price movement.
However, despite all this whale activity, the Bitcoin price has continued to remain under pressure and lacks enough stimulus to push it above $70,000.
BTC Price Won’t Rally Until Fed Rate Cuts
Although the Bitcoin price has been flirting close to its all-time high levels, most of the altcoins have been trading below their highs, thereby prompting caution among the market participants. As per renowned crypto analyst Benjamin Cowen, the enthusiasm for the imminent altcoin bull run is premature.
He also believes that until the Federal Reserve cuts interest rates again, a significant rally in crypto is unlikely. Historically, the altcoin market has performed better following these rate reductions. Cowen stated:
“The decline in the majority of altcoins is mirrored in the falling advance/decline index, echoing the period leading up to the Fed’s rate cut in 2019. This index saw a sharp decline before the Fed initiated rate cuts in July of that year. It’s essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a reduction in interest rates by the Fed.”
He also added that investors need to maintain caution in buying altcoins during the period of high bitcoin dominance.
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