The announcement of the third consecutive 75 basis point increase in the US interest rate accompanying a speech by the head of the central bank (the Federal Reserve), Jerome Powell, shortly thereafter contributed to an increase in market volatility desperate for good news in 2022 that he insisted never arrive.
Within six hours, Bitcoin (BTC) price fluctuated nearly $2,000, from a high of $19,956 reached shortly after the FOMC announcement, to a low of $18,125 driven by Prime monetary policy considerations for the greatest economic power on the planet.
His words made it clear that winter has no end date. The pain is likely to continue to spread throughout the US economy, but it will be most acute for risky assets such as cryptocurrencies and stocks. At least until the Fed is convinced that inflation, which was considered temporary for just over a year, is definitely under control.
After hitting its lowest levels since the current cycle lows recorded in June, Bitcoin has returned to the $19,000 level it was in before the FOMC meeting, with the boost likely coming from BTC’s whale move.
According to data from market monitoring platform Whale Alert, more than 166,000 bitcoins, worth approximately $3.1 billion, have been transacted and transferred from cryptocurrency exchanges to unidentified wallets in the past 24 hours.
This is a clear sign that major market entities seized the opportunity to buy the dip and accumulate more BTC after the sharp decline motivated by the not being too optimistic outlook on the US economy.
However, not all whales took the side of the bulls. Whale Alert also determined that Coinbase recorded more Bitcoin inflows into exchange whale wallets than asset outflows into cold wallets: $40.7 million versus $26.4 million, respectively.
Long Term Holders (LTH)
Meanwhile, from yesterday to today, long term holders (LTH) — or Long Term Holders, in free translation — has accumulated 4,000 BTC, as MB Research analyst André Franco points out in his daily post on the state of the market.
Franco highlighted that the accumulation of Bitcoin by these market entities is still on the rise, which constitutes one of the few positive signs for traders of the largest cryptocurrency in the market.
Historically, it has been a privilege for long-term holders to hoard coins during the darkest periods of bear markets.
Thus, these long-term holders are rated by the data monitoring platform on the chain Glassnode from day 155 they keep your coins intact. Prior to this period, by contrast, Glassnode classifies traders as short term owners (STH) – or short term holders, in a free translation.
Nearly 24 hours after the announcement of the new interest rate hike in the United States, bitcoin was priced at $19,390 and gained 1.4% in the last 24 hours, according to data from CoinGecko.
As recently reported by Cointelegraph Brasil, an analysis platform for data monitoring on the chain Santiment notes that the “bloodshed” in Bitcoin may have paused.
Read more