Crypto News

Bitcoin Establishes New Higher High Amid Market Volatility And Whale Activity

For the first time since its all-time high, Bitcoin has set a new technical higher high, with prices bouncing into the $66,000 region.

This marks a pivotal moment, as several critical on-chain metrics have also reached higher levels, signaling growing market interest and activity. However, market volatility has surfaced, driven by geopolitical tensions and significant whale movements.

A massive whale, known for large Bitcoin holdings, resumed depositing $BTC to centralized exchanges (CEXs) as the market reacted to Iran’s strike against Israel. Notably, this whale accumulated 3,933 BTC (worth $234 million) from Binance between August 29 and September 15 at an average price of $59,591. Just 40 minutes ago, the whale transferred 750 BTC ($46.3 million) to Binance as Bitcoin’s price fell by about 3%, settling around $61,751. With 9,736 BTC ($601 million) still in the whale’s possession, traders are left wondering whether further selling is imminent, reminiscent of the whale’s large dumps in July.

Traders On Binance Feels Optimistic About Bitcoin’s Next Movement 

Despite this, traders on Binance are optimistic. Approximately 61.36% of them are going long on Bitcoin, aiming to capitalize on the price dip. However, if Bitcoin bounces back to $63,000, about $112 million in short positions could face liquidation, adding another layer of volatility to the market.

Meanwhile, broader financial markets are also impacting Bitcoin. The Federal Reserve is expected to cut interest rates by 50 basis points in its upcoming meeting, which could act as a major bullish catalyst for the cryptocurrency. Additionally, Bitcoin ETFs have seen a shift, with a total net outflow of $243 million on October 1, following eight days of net inflows.

While Fidelity’s FBTC saw $144 million outflow and ARKB lost $84.35 million, BlackRock’s ETF IBIT bucked the trend with an inflow of $40.835 million.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: ipheung/123RF // Image Effects by Colorcinch

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