In July, Bitcoin whales significantly increased their holdings, accumulating over 84,000 BTC, with a value of $5.4 billion at current market prices.
This accumulation by addresses holding at least 0.1% of the Bitcoin supply represents the largest monthly increase in terms of BTC since October 2014, according to blockchain analytics firm IntoTheBlock.
Taking Advantage of Bitcoin Dips
This accumulation was characterized by a hunt for bargains during the price decline in early July, when BTC dropped below $55,000. These large holders, often skilled in anticipating market movements, took advantage of this price volatility to strengthen their positions.
BTC ended July with a modest increase of 3%, after a recovery to $69,000.
Confidence in a Bullish Future and Fed Forecasts
Strategic holders seem firmly believe that the extended phase of price consolidation between $50,000 and $70,000 will end with a bullish breakthrough, extending the initial rally from $16,000.
Federal Reserve Chairman Jerome Powell stated Wednesday that interest rates could be lowered as early as September, emphasizing that economic data must support this potential liquidity easing. The central bank kept its benchmark interest rate stable at the range of 5.25% to 5.50%, as expected.
Investors appear to remain confident, as even negative news such as the Mt. Gox distribution or sales by the German government have not been able to significantly impact Bitcoin’s price downward for more than a few weeks.
