Recent data highlights notable activity among Bitcoin whales, with significant accumulation occurring as prices declined. According to crypto analyst Ali Martinez, BTC whale accumulation grew amid the recent dip. Moreover, they were rewarded today significantly as the price rebounded above the $100,000 mark again.
Bitcoin Whale Accumulation & Macroeconomic Factors
Martinez revealed on X that 342 wallets holding over 100 BTC were created by Bitcoin whales as BTC price fell from $104,000 to $90,000. This indicates sustained interest from large investors during market corrections, which could have formed the basis of today’s recovery amid the backdrop of favorable macroeconomic conditions.
#Bitcoin whales are buying every dip! In fact, 342 wallets with over 100 $BTC were created as prices dropped from $104,000 to $90,000. pic.twitter.com/cMJRnshOAt
— Ali (@ali_charts) December 11, 2024
Meanwhile, investors closely monitored U.S. economic indicators for signs of further Federal Reserve action. The latest Consumer Price Index (CPI) report from the Labor Department revealed that annual inflation increased to 2.7% in November, up slightly from October’s 2.6%. This aligns with market forecasts, leading to speculation about a potential interest rate cut at the Federal Reserve’s upcoming Federal Open Market Committee (FOMC) meeting.
On a monthly basis, headline CPI rose by 0.3% compared to 0.2% in October. Core CPI, which excludes volatile categories like food and energy, remained stable at 3.3% year-over-year, unchanged from the previous month. Monthly core inflation also stayed at 0.3%. Market participants have interpreted the steady core inflation data as a sign that further monetary easing may be on the horizon.
Will BTC Price Surge Continue?
In response to the CPI report, the U.S. 10-year Treasury yield increased by 0.12% to reach 4.228%, while the U.S. Dollar Index dipped slightly by 0.06% to $106.020. The crypto market rebounded after a turbulent start to the week, with Bitcoin and several major altcoins posting gains.
Bitcoin price stood at $100,332.94 at the time of writing, reflecting a 3.72% increase. Over the past 24 hours, it reached a peak of $100,442, following last week’s all-time high of $103,900. Trading volume, however, dropped by 14.89% to $95.84 billion owing to the bearish sentiment earlier today.
Whilst. key altcoins, including Ethereum (ETH), XRP, and Solana (SOL), also registered gains, reflecting improved investor sentiment. The crypto Fear and Greed Index stood at 73, indicating strong market confidence. Martinez projected a potential Bitcoin price target of $135,000, reflecting ongoing optimism despite market volatility.
Market participants are now awaiting the Producer Price Index (PPI) data, which may further influence Federal Reserve policies and the trajectory of the crypto market.
Also Read: Microsoft Shareholders Say No to Bitcoin Treasury Allocation
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