Bitcoin whales increased their holdings during a recent price dip, while the Coinbase Premium Index (CPI) may indicate Bitcoin's future trajectory.
Whale wallets experienced a significant surge in accumulation, acquiring over 22,000 BTC during the market dip on January 28th. Bitcoin's price plummeted to a low of $97,700 during the day's trading, presenting a modest discount that triggered a wave of buying from large investors. This buying frenzy suggests a strong belief in Bitcoin's long-term potential, even amidst short-term price volatility.The upcoming FOMC forward guidance and crucial U.S.
inflation data, scheduled for release on Friday, are expected to heavily influence Bitcoin's trajectory into February. However, there are also indications of potential selling pressure from larger holders. Glassnode data reveals that whales, defined as entities holding over 1,000 BTC, have been gradually shedding their holdings since mid-December. This trend has resulted in a 4% decline, from 1,724 to 1,655, suggesting an increase in sell-offs in recent weeks.A sustained decrease in this metric could foreshadow a potential local or cyclical peak, echoing a similar pattern observed during the 2020-2021 bull run. Furthermore, analyzing the network growth provides additional insights. Since December, the average number of active addresses has dipped from nearly 1.1 million to 957,000. However, the metric appears to have stabilized around 950,000. A resurgence in this indicator could signify a renewed interest in the Bitcoin market, potentially driving the price to new heights. Notably, demand remains relatively subdued as of this writing. The Coinbase Premium Index (CPI), which gauges U.S. investors' appetite for Bitcoin, exhibited muted activity in January. Historically, Bitcoin has demonstrated a sustained upward trend whenever the CPI remains positive (green) for an extended period.
BITCOIN WHALES MARKET DIP CPI FOMC
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