- Purchases for $940 million in BTC this week indicate a bullish reversal of the cryptocurrency, despite the coin once again falling below the $50,000 mark.
- Corporations that own Bitcoin on their balance sheets represent 8% of the total circulating supply of the cryptocurrency.
- One of the companies that bought the most BTC after the price drop was MicroStrategy, which accumulated additional Bitcoin worth $177 million.
- Hedge funds predict that the price of Bitcoin will reach $ 100,000 by the end of the year.
Despite the drop below the psychological barrier of $50,000, large investors and whales added another 20,000 BTC to their accounts, indicating optimism in further rises for the asset, and bets by the big pockets on a new bullish streak.
Whales that own crypto assets in the range of 100 to 10,000 BTC, took advantage of the price crash to make massive purchases and increase their holdings. In the last 24 hours these traders added $940 million in bitcoin to their portfolios.
Market analysts often see such moves by big traders as a signal of the future strength of the digital currency. In other words, the whales are believed to be projecting a bullish outlook for BTC in the coming weeks or months.
Another sign for the possible price evolution of Bitcoin is the institutional purchases of the cryptocurrency. The US business intelligence agency, MicroStrategy, which is listed on the New York Stock Exchange, acquired a total of 3,907 BTC at an average of $ 45,000 per unit.
Including the recent $177 million purchase, the firm now owns $2.9 billion worth of BTC. The average purchase value of BTC by the company stands at $26,769.
Forecasts for the Fed Impact on the Market
This week’s bullish sentiment around cryptocurrencies and stocks appears to have faded on Thursday. The announcement of a possible reduction in treasury purchases for September by the chairperson of the Federal Reserve Bank of Dallas, Robert Kaplan, has hit the market.
In the last 24 hours, the price of Bitcoin traded at around $47,000, falling approximately 4% from its highest price. CoinDesk analysts posit that the retracement price could stabilize between $42,000 and $45,000.
On The Flipside
- The inside information handled by some corporations could be a determining factor in betting on BTC.
- BTC corporate holdings have increased this year, as well as its use. The companies that have the cryptocurrency on their balance sheets, manage 8% of the total supply of the circulating crypto asset (1.66 million Bitcoin).
According to a Crypto Parrot survey of 55 cryptocurrency hedge funds, 65% of these funds are not only optimistic about the future of BTC, but 1 in 5 of them predict that, by December, Bitcoin will be priced between $100,000 and $150,000.
Why You Should Care?
FXStreet analysts believe that, before a new bullish streak, Bitcoin will stabilize at $57,000, whether or not the current downturn continues.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.
