In the last month, Bitcoin long-term holders, known as HODLers, have increased their holdings, adding an impressive 404,448 BTC worth approximately $23 billion, according to on-chain data reported by CryptoQuant CEO Ki Young Ju. This accumulation has brought the holdings of “permanent holder addresses” close to their all-time high, despite the surrounding uncertainty in the crypto market.
HODLers Seize the Dip: A Closer Look at Recent Accumulation Trends
Despite recent turmoil within the cryptocurrency market, which included worries over a potential crash, seasoned Bitcoin investors have seized the opportunity to increase their positions. Ki Young Ju has also forecasted that traditional financial institutions, government bodies, and corporations will make significant Bitcoin acquisitions by the third quarter of 2024. He emphasized that retail investors might regret not taking advantage of current dip opportunities, as many have remained on the sidelines amidst various concerns, including the ongoing Mt. Gox situation and macroeconomic factors alongside potential sales by the German government.
Bitcoin Price Recovery: Eyes Set on $60,000
This resurgence in Bitcoin accumulation occurred against a backdrop of easing concerns surrounding a possible recession in the United States. Recent positive sentiment has led to a robust recovery in the US and Japanese stock markets, translating into a solid rebound in the crypto space as well. Bitcoin and various altcoins have surged over 15% from their lows observed earlier in the week.
Bitcoin’s price, which reached a low of under $50,000 earlier this week, is now eyeing recovery toward the $60,000 mark. Ki Young Ju stated that as long as Bitcoin holds above $45,000, there remains a strong potential for new all-time highs within a year. Although the cryptocurrency experienced significant volatility with price dips below $50,000 on two occasions, the market showed resilience with a pronounced bounce-back. Ju has suggested that while there are current bearish signals, he anticipates a rebound in the coming two weeks. Conversely, if bearish trends persist for a month or longer, it could diminish recovery chances.
The altcoin market is following Bitcoin’s upward trajectory, with Ethereum surpassing the $2,500 threshold. Furthermore, inflows into spot Ethereum ETFs have surged despite the high volatility seen in recent days.
Coinbase Issues Warning: Market Volatility and Economic Uncertainty
Coinbase has issued a warning following an $800 billion downturn within the crypto market, amidst broader economic uncertainties. The market disruption began on a Sunday, greatly influenced by a sell-off in Japanese stocks resulting from the unwinding of the extensive Japanese yen carry trade. This carry trade involved investors borrowing in low-interest-rate currencies and reinvesting in higher-yielding assets abroad. The unraveling was triggered by the Bank of Japan raising its benchmark interest rate last week, a move which analysts have described as “the biggest carry trade the world has ever seen.”
According to David Duong, the head of institutional research at Coinbase, ongoing market jitters are likely to persist in the near term; however, a potential market rebound could occur if short-sellers are squeezed in the coming days. “But don’t be fooled into thinking that this market disruption is over,” Duong cautioned. The compounded fears of a recession are expected to have lasting impacts in the weeks leading up to the Federal Reserve’s decision in mid-September, and Duong retains a perspective of a choppy market throughout the third quarter.
He concluded that the current pullback should not be viewed as the beginning of a new market cycle and maintains a more optimistic outlook moving into the fourth quarter, although the strength of the current price movements is testing his conviction. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
