- Bitcoin and Ethereum avoided losses after US stocks plummeted over the past 24 hours.
- Investors fear that the US Federal Reserve may need to tighten monetary policy longer than expected, increasing selling pressure on risk assets.
- Bitcoin whales have accumulated $6.73 billion worth of BTC, traders await volatility.
Bitcoin (BTC) price held its ground despite the US stock market bloodbath on Thursday. Large-wallet investors started accumulating BTC, buying the asset at a discount through the dip. Accumulation by whales signals incoming volatility in the largest crypto asset by market capitalization.
Also read: Ethereum rival Cardano sharks gobble up 331 million ADA tokens, fuels fear of mass sell-off
Bitcoin could witness a spike in volatility following the recent whale accumulation
Bitcoin large-wallet investors, also known as whales, have scooped up $6.73 billion in BTC, fueling anticipation of incoming volatility in the asset’s price. Over the past 24 hours, Bitcoin price held steady at $16,845 despite the bloodbath in the US stock market seen on Thursday.
Investors are reconsidering the US Federal Reserve (Fed)’s policy decisions. There is a likelihood that the central bank could pivot anytime soon, to a more dovish monetary policy. This could typically result in a price decline in risk assets like Bitcoin.
Positive economic data has re-kindled fears that the US Federal Reserve may need to tighten monetary policy longer than expected. This could increase the downward pressure on risk assets like Bitcoin and Ethereum, as 2022 draws to an end.
In Messari’s Ryan Selkis’ 168-page report with his 2023 predictions for cryptocurrencies, the analyst believes the market direction is influenced by macroeconomic outlook and regulation.
Whales influence capital supply in crypto markets. Therefore, renewed accumulation of BTC by large-wallet investors implies Bitcoin price could experience volatility before the end of 2022. Large wallets scooped up 400,000 BTC through crypto winter since November 9, based on data from crypto intelligence platform Whalemap.
BTC accumulation by whales
Bitcoin price at risk of decline after Death Cross
Bitcoin price chart below reveals a Death Cross pattern, where the 50-day Exponential Moving Average (EMA) crosses under the 200-day EMA. The Death Cross in the chart below was seen in the second week of November and resulted in a steep decline from $20,000 to $16,000 within the same week.
The most recent Death Cross in the third week of December is a clear bearish re-test for Bitcoin. Capo of Crypto, a leading technical analyst, argues that Bitcoin’s downtrend is intact and the crypto market as a whole is not prepared for fresh upcoming losses.
Experts on crypto Twitter remain firmly bearish.
BTC/USDT 4H Binance price chart
Bitcoin price could invalidate the bearish thesis if BTC crosses the resistance levels at the 50-day EMA at $16,884 and 200-day EMA at $17,141. Bitcoin price outlook for the end of 2022 remains bearish.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.