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Steve Muchoki
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The increased fear of further crypto capitulation has given some Bitcoin whales, led by Marathon Digital, an opportunity to buy at discounted prices.
Bitcoin (BTC) price has slipped more than 4 percent in the last 24 hours to trade about $58k on Thursday, during the mid-London session. After experiencing heightened resistance below $62k following the daily death-cross between the 50 and 200 Moving Averages (MAs), the flagship coin is on the verge of major volatility in the near term.
From a technical standpoint, Bitcoin price could either rebound towards $64k, in a similar fractal pattern with Toncoin (TON) or continue in a bearish outlook towards $40k. The lack of clear direction for Bitcoin price action is based on the mixed fundamentals amid the historical data that shows August and September are bearish months for the entire crypto industry.
Bitcoin Whales and Sharks Portrays Mixed Behavior
Amid the heightened crypto volatility following last week’s crash that resulted in the liquidation of more than $1.6 billion in two days, Bitcoin investors have shown more fear. Bitcoin’s fear and greed index dropped below 30 percent again today as the instrument teased below $59k, denoting extreme fear of further crypto capitulation.
Consequently, Bitcoin’s whales and shark traders have depicted mixed emotions for the recent dip. For instance, the United States government deposited 10k Bitcoins, worth nearly $600 million, to Coinbase Prime on Wednesday. Consequently, the US government has deposited 16k Bitcoins to the Coinbase exchange this year and currently holds over 203k BTC coins, worth over $11 billion.
Interestingly, the US government sold the 10k Bitcoins despite the recent pledge by Donald Trump to hold and never sell the entire bag, if he is elected president later this year. Meanwhile, the US spot Bitcoin ETFs registered a net cash outflow of about $81 million on Thursday led by Grayscale’s GBTC and Fidelity’s FBTC. Notably, BlackRock’s IBIT only registered a net cash inflow of less than $3 million.
However, some whale investors view the current crypto dip as an opportunity to enter in preparation for an inevitable parabolic rally in the near term.
For instance, Marathon Digital Holdings Inc. (NASDAQ: MARA), a prominent Bitcoin miner, announced that it has successfully secured $300 million via an oversubscribed offering of convertible notes to purchase more Bitcoins. The announcement follows a similar Bitcoin plan from Metaplanet Inc. (Tokyo: 3350), which currently holds over 303 Bitcoins.
Meanwhile, the recent U.S. SEC filings from MicroStrategy Inc. (NASDAQ: MSTR) show that the Norwegian and Swiss central banks hold over 1.5 million shares, thus an indirect holder of Bitcoin.
Whale “0xbe6” withdrew another 670.84 $WBTC ($39M) from #Binance at $58,107 ~25 minutes ago.
In the past 2 days, the whale has withdrawn 1,606 $WBTC from Binance at $58,894 on average (est. cost: $94.6M);
And now suffers an unrealized loss of $1.52M (-1.61%).
Follow… https://t.co/zIvqCDgP7g pic.twitter.com/AMSyflgNbC
— Spot On Chain (@spotonchain) August 15, 2024
According to on-chain data analysis, a bullish whale has withdrawn Bitcoins worth nearly $100 million from Binance in the past 24 hours.
Midterm Price Expectations
Despite the notable crypto bearish pressures, more than 69 percent of top traders on Binance have gone long Bitcoin price compared to about 30 percent in short traders.
Following the recent US CPI data that shows easing inflation, which suggests an inevitable interest rate cut soon, Bitcoin price is likely to rebound to a new all-time high before the end of this year.
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