In the cryptocurrency market, there has been a decline in both spot and derivative exchange trading volumes due to concerns about the macroeconomy. The hawkish position of Federal Reserve officials has raised doubts about the possibility of high interest rates.
Bitcoin Whales Are Making Purchases
According to data from the on-chain data platform Santiment, large whales have taken advantage of the Bitcoin price range between $61,000 and $64,000 to accumulate BTC in the past 24 hours.
Investor groups holding between 1,000 and 10,000 BTC have accumulated over 15,000 BTC, which is valued at $941 million. Despite the price drop to $62,000, whales have continued to accumulate BTC without any signs of slowing down.
The purchases made by whales are significant for a positive outlook on the entire cryptocurrency market. Whales have reached the highest hodl level in the past two weeks, which adds to the optimism for the rise of Bitcoin. However, the market uncertainty seems to be prolonging the consolidation process.
Federal Reserve and Bitcoin Price Outlook
Boston Fed President Susan Collins made a statement on Wednesday, suggesting that interest rate cuts may take longer than anticipated. Collins believes that slower economic growth in the US is necessary to reduce inflation, which could lead to a decrease in demand.
The hawkish stance of Fed official Neel Kashkari, despite the dovish approach of Fed Chairman Jerome Powell and the economic factors observed last week, has created anxiety in the cryptocurrency market.
According to data from the CME FedWatch Tool, it is likely that the US Fed will start reducing interest rates in September, with the possibility of further cuts of 25 basis points in November and December.
Will Bitcoin Price Experience a Drop?
As traders take profits or liquidate their long positions, the Bitcoin price has dropped below $62,000 during US trading hours. Today, the BTC price has experienced a decrease of over 5%, and over the past 24 hours, it has decreased by over 1%. There has also been a decrease in trading volume in the past 24 hours.
According to Kaiko, one of the major research firms in the market, meme tokens continue to be the top leveraged altcoins due to significant accumulation by whales and other investors.
Investors in this bullish market continue to buy meme coins such as dogwifhat (WIF) and Pepe Coin (PEPE), expecting their prices to rise.
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Disclaimer: The information in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
