A combination of various macroeconomic factors has led to a remarkable upsurge in Bitcoin’s value, propelling it to the impressive price of $69K within just 10 days of trading. This surge has been influenced by factors such as the post-halving surge, the frenzy of “Uptober,” the nearing end of the election cycle, and cuts in the Federal Reserve rates.
Unlike previous rallies, the current bullish trend has shown resilience against bearish pressures, with daily lows remaining relatively stable, only seeing slight fluctuations.
Trading at such high levels may instill apprehension among traders, prompting them to secure profits and exit positions. For the market to perceive the current price as an attractive entry point, a significant catalyst, possibly the conviction of large holders or whales, is required.
The Emergence of a Long-Inactive Bitcoin Whale
A disclosure on X (previously known as Twitter) brought to light the reactivation of a dormant Bitcoin wallet that had been inactive for over a decade. This wallet holds 25 BTC, valued at approximately $1.7 million.
It is crucial to consider the timeline of this event. The dormant wallet had maintained its 25 BTC since 2013, during a period when Bitcoin’s value ranged from $100 to $266.
With the recent surge in Bitcoin’s price, the owner of this wallet now possesses a significantly appreciated asset. Remarkably, this marks the second instance within a span of two days when an old whale has resurfaced.
In the past ten years, the amount of BTC stashed in dormant wallets has reached an all-time high of 19 million BTC, translating to approximately $1.311 trillion at a price of $69K.
The escalation in BTC holdings in dormant wallets typically indicates an optimistic trend, showcasing holders’ preference to await potential price increases rather than liquidating. However, it also implies a substantial supply of Bitcoin that might flood the market if these dormant holders opt to sell.
Keeping an eye on the actions of these reactivated wallets is pivotal. Should the owners perceive the current price as an opportunity to cash out, it could attract more buyers and induce FOMO in the market. Conversely, if they assess limited growth potential, a considerable pullback may be witnessed.
The Significance of Trust from Major Players
An intriguing pattern revealing increased market volatility has been identified by CryptoCrypto.
Just a day earlier, a profound long red candle emerged on the chart, indicating a transfer of nearly 38,000 BTC to exchanges, leading to a noticeable surge in exchange reserves.
Despite this aggressive offloading, Bitcoin’s price movement stayed relatively steady, settling above $69K – reaching a level not seen in four months.
This anomaly could potentially be attributed to intervention by revered well-established holders who absorbed a significant portion of the selling pressure. This isn’t mere speculation; it is substantiated by authentic data, with a purchase of nearly 40,000 BTC by significant holders on the same day.
Large holders or whales have a pivotal role in maintaining market stability. Their backing is crucial in preventing overheating of the market, which could otherwise signal a potential peak, leading to widespread capitulation.
However, should their confidence falter, a corrective dip in prices might be on the horizon.