Following the recent announcement by the Federal Open Market Committee (FOMC) to maintain interest rates at current levels, the cryptocurrency markets have staged a robust rebound.
Traders are feeling bullish, buoyed by the decision’s positive impact on both equities and the correlation between cryptocurrency and the S&P 500.
🇺🇸📈 After the #FOMC announced that interest rates will be standing pat for the time being, #crypto markets rebounded with a vengeance. Trader #bullishness is high as the #Fed's decision benefits #equities & #cryptocurrency's correlation with the #SP500. https://t.co/H0adpg6QbF pic.twitter.com/6pZNQUcliH
— Santiment (@santimentfeed) March 20, 2024
Despite a recent decrease in the total number of non-zero coin wallets on the Bitcoin network over the past 10 days, market observers interpret this as a sign of ongoing volatility rather than a cause for concern.
Historically, such declines in wallet activity have coincided with periods of fear, uncertainty, and doubt (FUD) in the market. Typically, it suggests that smaller Bitcoin wallets are capitulating while larger entities are accumulating assets.
Previous instances of mid-term drops in active wallets have resulted in notable price increases for Bitcoin:
👋🐟 Over the past 10 days, a net difference of -311K total non-0 coin wallets have dropped off of the #Bitcoin network. To a novice trader, this may appear to be a concern with less overall active participants. However, historically this stat has reflected #FUD moments in the… pic.twitter.com/ZpbCMGU1lX
— Santiment (@santimentfeed) March 21, 2024
– From September 23 to October 23, a decrease of 1.10 million non-zero wallets was observed, coinciding with a 28% increase in BTC price.
– Similarly, from January 21 to February 13, a decline of 757,000 non-zero wallets occurred, leading to a 24% surge in BTC price.
– The most recent decline, from March 10 to March 20, saw a reduction of 311,000 non-zero wallets, accompanied by a modest 3% decrease in BTC price.
Whales Are Actively Buying More Bitcoin During The FOMC Report
On the on-chain front, whales have been actively buying BTC during dips. One whale has accumulated 4,451 BTC ($294.6M) from Binance at an average price of $66,195, resulting in an unrealized profit of approximately $3.35M. Another whale withdrew 673 BTC ($45.2M) from Binance in the past 2 hours.
A whale has been buying $BTC on dips since the $BTC dropped on Mar 14.
He has accumulated 4,451 $BTC($294.6M) from #Binance at an average price of $66,195.
With the rise of $BTC, he started making money, with an unrealized profit of ~$3.35M.
Address:… pic.twitter.com/dikaQjCd6m
— Lookonchain (@lookonchain) March 21, 2024
However, despite the positive sentiment, data from Spotonchain indicates a negative net inflow for BTC ETFs for the third consecutive trading day, amounting to -$262M. This trend has contributed to a cumulative total net inflow of $11.42B over 48 trading days, with single-day inflows hitting their lowest level in the past 18 trading days.
🚨 $BTC #ETF Net Inflow Mar 20, 2024: -$262M!
• The net inflow has been negative for 3 consecutive trading days, losing a total of $742M.
• The cumulative total net inflow after 48 trading days is now only $11.42B.
• iShares Bitcoin Trust $IBIT single-day net inflow further… https://t.co/F9YP3Ux967 pic.twitter.com/ywlM8hnfPW
— Spot On Chain (@spotonchain) March 21, 2024
According to analyst Ali Martinez, a Bitcoin surge to $68,500 could trigger approximately $31 million in liquidations across various assets.
We're in a bull market, but you continue shorting $BTC! 🤦♂️ As a result, around $31 million will be liquidated across the board if #Bitcoin jumps to $68,500! pic.twitter.com/iHg49bYQKe
— Ali (@ali_charts) March 21, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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