A total of $1.23 billion was injected by investors to purchase over 20,200 Bitcoin (BTC) in a stunning move despite bearish market sentiment. According to top market analyst Ali Martinez, the total purchases were sent to accumulation addresses.
BTC Market Sentiment and Whale’s Long Game
The price of Bitcoin has suffered a significant decline thus far this month, dropping from $67,000 to about $60,000. As per CoinMarketCap data, the digital asset is currently trading at $60,913.21, down 0.87% in the past 24 hours.
Someone bought the #Bitcoin dip! Over 20,200 $BTC, worth $1.23 billion, were sent to accumulation addresses… 👀 pic.twitter.com/FAyKK6UzDN
— Ali (@ali_charts) June 28, 2024
Hence, Martinez’s update implies that the buyers are dedicated investors with unshaken faith in Bitcoin’s price predictions despite the current dip. It also signals the optimism in Bitcoin in the long term, in the hope that the digital asset will soar again.
Notably, an accumulation address refers to a Bitcoin wallet with no previous record of withdrawals and is not linked to any crypto exchange or Bitcoin miners. Some analysts suggest that these investors are grabbing up Bitcoin at a fair price before the predicted bullish cycle begins.
A previous Crypto-Vanguard report showed Bernstein analysts Gautam Chhugani and Mahika Sapra are bullish on Bitcoin. Their report foresees a bullish trajectory for Bitcoin, predicting a cycle high of $150,000 by 2025, with a year-end price target of $90,000.
If the above price prediction holds, the investor would rake in a minimal profit of $30,000 per BTC purchased. The profit margin covers approximately half of the $1.23 billion invested in acquiring the asset.
Bitcoin Influences and Speculations
Bitcoin enthusiast and mega accumulator, Michael Saylor of MicroStrategy in recent podcasts and interviews remains long on the digital asset.
Recently, he referred to Bitcoin as “the cure to economic ill”. Saylor’s MicroStrategy has at different times made huge purchases of BTC without bothering about market dip.
Although the identity of the current investors remains unknown, some analysts suggest they may have been listening to Saylor and adopting the MicroStrategy boss’s playbook. Others consider it baffling that such a staggering purchase did not impact price performance.
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