No tags found
Saturday Jun 03, 2023

Whales are waiting for Bitcoin at $30,000

Cryptocurrencies are still classified as a risky asset class, which implies a decrease in interest in a deteriorating macroeconomic environment. The growth of global inflation, the risks of the global energy and food crises force market participants to reassess.

So, at the end of January, whales (wallets over 1 thousand BTC) increased their Bitcoin reserves, considering the price of $ 40 thousand and below an excellent offer.

Now they are back to selling.

The activity of small buyers with wallets up to 10 BTC keeps the price from falling: they are increasing purchases in the hope of forming a local bottom. However, the calculations of analyst Willy Wu demonstrate the absence of the necessary failure in relative value measurement: “there is still room for another fall.”

AcheronInsights editor Christopher Yates shares Willy Wu’s concerns and expects Bitcoin to decline to $30,000 amid the deterioration of the macro environment and the upcoming tightening of the Fed’s monetary policy.

However, most market participants continue to be optimistic about the prospects of the cryptocurrency market. For example, publicly traded mining companies have previously announced the expansion of orders for asics with the aim of more than doubling the increase in capacity by the end of the year. The biggest breakthrough is expected from Marathon Digital (NASDAQ:MARA), which plans to increase the hashrate by six times and become the most powerful publicly traded miner in the world.

At the same time, mining companies are in no hurry to sell the mined coins, and some of them not only mine, but also buy Bitcoin on the market. So, Marathon Digital currently has a stock of 8,956 BTC, of which 4,813 BTC was bought by the company in January last year.

Already today, the US Federal Reserve will announce an increase in the key rate, which may be followed by a new wave of Bitcoin sell-off. At least, the whales are playing out exactly this scenario, hoping for a return to shopping at lower prices.