Amid the overall market rally, the world's largest cryptocurrency Bitcoin (BTC) is making strong moves, aging over 4% and rocketing closer to the $45,000 mark. The development comes amid massive whale accumulation in Bitcoin over the past four weeks.
Bitcoin whale supply at 14-month high
On0 Chain data provider Santiment noted that Bitcoin price has reclaimed $44.5K for the first time since the “ETF hangover” retracement began on January 12. This price increase is partly attributed to the increase in holdings in wallets with 1,000 or more Bitcoin.
The data shows that these large wallet holders, each holding over 1,000 BTC, are currently holding the largest total amount of Bitcoin in over 14 months. This accumulation trend among whales, or large investors, indicates growing confidence in Bitcoin's long-term value proposition and may be contributing to the recent upward trend in its price.
Courtesy: Santiment
Renowned crypto analyst Ali Martinez has shed light on a crucial development in the Bitcoin market, highlighting a significant support zone for the leading cryptocurrency. According to Martinez, over 3 million addresses collectively purchased nearly 1.50 million BTCs in the price range of $41,800 to $43,080.
Renowned crypto analyst Michael van de Poppe has suggested that the correction phase for Bitcoin may be coming to an end, suggesting a possible rally ahead of the halving. Van de Poppe also predicts that Bitcoin price action could lead to the range of $48,000 to $51,000 in the near term.
However, Bitcoin miners have recently been selling to raise capital to purchase sophisticated mining rigs and ramp up operations.
Stocks catching up
Assuming the long-term correlation between crypto and the S&P 500 remains intact, there is a case to be made that BTC and other cryptocurrencies will catch up at some point, perhaps before the Bitcoin halving in April. However, with the Fed Chair signaling a delay in rate cuts, the likelihood of strong volatility going forward cannot be ignored.
As stocks hit new all-time highs, this presents a unique situation in which cryptocurrency traders can hope that market values closely align with the performance of publicly traded companies. Historically, cryptocurrencies experienced their most significant bull runs when their correlation with stocks was minimal or non-existent.
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