Since Bitcoin price dropped sharply in the first few days of the month, the volatility rate has increased sharply. With each small jump, markets experience massive pullbacks that bring levels back to their starting positions. With the recent drop, the possibility of a sustainable recovery might have been put on hold for a while. However, from a broader perspective, BTC can be viewed as a golden opportunity to accumulate at discounted prices.
In an interesting update, the US government has reportedly transferred nearly 10,000 BTC worth $591 million to the exchange Coinbase, presumably sourced from the seized Silk Road. This may have triggered the sellers who have been building up acute selling pressure since the last trading day.
Also, the new CPI rates came in lower than expected at around 2.9% year-on-year, which is the lowest since 2021. The drop in interest rates has raised the possibility of Fed rate cuts in the coming days. The historical pattern seems to have changed since the beginning of the year with the launch of the spot BTC ETF and the involvement of institutions in the crypto space, which has changed the market dynamics.
What can we expect from the markets in the coming days?
The markets have become largely dependent on the institutions and the whales or the larger wallet holders. Any movement within the wallets held by them has greatly influenced the BTC price rise and the entire crypto market. According to the latest on-chain data released by Glassnode, these large wallet holders have once again started accumulating their holdings.
The last time these wallets accumulated BTC was when the price reached a new all-time high above $73,750. Since then, the price has faced an acute distribution, which has maintained selling pressure on the cryptocurrency. However, with the resurgence of accumulation, hopes of a new all-time high have been revived. It must be noted that these large wallets were often linked to ETFs that are showing signs of reversing accumulation.
The pullbacks are usually considered as short-term price movements that can provide a good opportunity for accumulation. Therefore, the Bitcoin (BTC) price could get the required bullish push in the coming days, but only after the prevailing accumulation has reached its end.
