Bitcoin Whale Accumulation Rises Ahead Of US CPI Data

Rupam Roy
December 12, 2023
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Decade Old Dormant Bitcoin (BTC) Address Wakes Up To 10,419% Profit

As BTC faces a recent price dip, the crypto market is witnessing a strategic move by prominent Bitcoin whales amid anticipation of key inflation data releases. However, despite the price dip, market watchers suggest that the increase in entities holding substantial amounts of Bitcoin indicates a bullish sentiment.

Notably, this surge in accumulation aligns with potential market corrections and is complemented by crucial support and resistance levels. Additionally, these market dynamics intertwine with the imminent U.S. Consumer Price Index (CPI) release, adding a layer of anticipation and strategic consideration.

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Bitcoin Whales Accumulate as Market Faces Volatility

Amid the recent turbulence in the cryptocurrency market, prominent analyst Ali Martinez sheds light on a noteworthy development. A recent X post of the crypto expert showed that the aftermath of the Bitcoin price dip reveals a discernible surge in entities holding 1,000 BTC or more. Notably, Martinez indicates that this uptick in accumulation implies that Bitcoin whales are leveraging the market dip to increase their holdings.

Martinez, in his other update, suggests that the crypto market is not without its stabilizing factors. In the event of a deeper correction, Bitcoin has a solid support zone ranging between $37,150 and $38,360. This support is backed by a substantial 1.52 million addresses holding a collective 534,000 BTC.

However, it is worth noting that two significant resistance walls loom at $43,850 and $46,400, potentially acting as barriers to the Bitcoin uptrend.

Also Read: Elon Musk Faces Legal Heat As Judge Probes Into Twitter Stock Manipulation Lawsuit

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Price Movements Amid CPI Anticipation

As Bitcoin experiences fluctuations, market players are keeping a close eye on the upcoming U.S. Consumer Price Index (CPI) release. Scheduled for later today, the Bureau of Labor Statistics report is anticipated to reveal a decline in Consumer Price Index (CPI) inflation to 3.1%, marking the lowest point in the past five months.

According to financial experts, the cryptocurrency market is poised for a rebound following the recent selloff, contingent on the inflation data being lower than the projected figures.

Meanwhile, Bloomberg economists Anna Wong and Stuart Paul suggest that a decline in energy prices might offer the Federal Reserve room to consider lower interest rates. In addition, the economists predict that short-term inflation expectations have diminished due to lower energy prices, potentially allowing the Fed to contemplate rate cuts.

Inflation has moderated more rapidly than expected, raising speculation about rate cuts in the coming months. However, Fed officials caution about potential challenges on the path to the 2% inflation target, emphasizing the importance of monitoring the labor market and inflation risks.

Meanwhile, as of writing, the Bitcoin price slumped 1.6% to $41,764.92, and its trading volume soared 17.2% to $31.63 billion. Notably, the crypto has touched a low of $40,234.58 and a high of $42,470.31 in the last 24 hours, suggesting increased volatility in the digital asset space.

Also Read: XRP Lawyer John Deaton Lashes Out At Sen Elizabeth Warren & SEC Chair Gary Gensler

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.