Bitcoin Whales Accumulate $5.4B Worth Of BTC Tokens In July

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Large Bitcoin holders accumulated 84,000 BTC tokens worth approximately $5.4 billion in July, marking the largest monthly accumulation since October 2014.

According to data, much of this accumulation happened when Bitcoin dipped below $55,00 in early July. Moreover, the trend reflects confidence in Bitcoin’s capability to stage a bullish breakout following its consolidation stage.

Large Bitcoin Holders Hit the Highest Monthly Accumulation of BTC Tokens in July

According to IntoTheBlock data, crypto addresses holding 0.1% of the total Bitcoin supply acquired a combined total of 84,000 BTC in July. This massive acquisition, worth $5.4 billion at current market prices, marks the largest single-month Bitcoin accumulation since 2014.

This chart shows when large whales had significant inflows to their wallets. Notice anything interesting? pic.twitter.com/9xKW2NhF8n

— IntoTheBlock (@intotheblock) July 28, 2024

The whales’ acquisition sprung from investors seeking to buy the dip as Bitcoin dropped below the $55,000 region in early July. However, the accumulation briefly halted after Bitcoin recovered and reached $69,000.

The acquisition trend reflects investor confidence that Bitcoin will eventually stage a bullish breakout following the prolonged consolidation between $50,000 and $70,000. The whales also expect an upcoming rally that could push BTC above an additional $16,000 in value.

Crypto market participants and analysts are optimistic that Bitcoin and the broader market will soon record explosive price rallies. However, crypto volatility and susceptibility to macro-economic factors are potential obstacles to such moves.

BTC trades at $64,493, according to CoinMarketCap. Bitcoin has plummeted by 2.64% within the past 24 hours and is still 12.48% down from its ATH of $73,750.

Potential Interest Rate Cut And Its Impact On Crypto

The US Federal Reserve has announced plans to maintain the current interest rates at a 23-year high. This move will keep the interest rate at 5.25% – 5.5%. In addition, the Feds noted progress in achieving the Committee’s target to reduce the inflation rate to 2%.

Part of the Federal Reserve’s statement reads:

“ In recent months, there has been some further progress toward the Committee’s 2 percent inflation objective.”

Moreover, Fed Chair Jerome Powell disclosed a potential interest rate cut in September as US inflation drops.

Powell said: “If we were to see inflation moving down … more or less in line with expectations, growth remains reasonably strong, and the labor market remains consistent with current conditions, then I think a rate cut could be on the table at the September meeting.”

Following Powell’s statement, many crypto analysts predicted a possible boost for crypto via the September rate cut. 

Bitfinex Head of Derivatives Jag Kooner believes the cut will trigger more bullish sentiment in the crypto market and enhance liquidity. Kooner expects an explosive rally in Bitcoin’s price to create more ETF inflows and investors’ profits. 

Also, the Bitfinex executive noted the growing confidence of crypto investors at the moment, especially in Bitcoin. 

Moreover, BTC has shown strong resilience amid recent challenges that attempted to push prices southward. These include the German government’s massive sell-off of BTC holdings, Mt. Gox Bitcoin distribution, etc.