Market Accumulates Bitcoin But Explosive Catalysts Are Missing

At press time, Bitcoin is still down almost 37% from its November peak and still lacks growth catalysts to propel the price to new all-time highs.

BTC/USD 4 hour chart | Source: Trade View

The cryptocurrency market as a whole has had a rough time as demand for risky assets has waned amid escalating inflation, the increasingly dovish stance of the Federal Reserve and rising tensions among the world’s major powers.

The largest bitcoin wallet increases accumulation

However, there are signs that the market is in an accumulation phase. Institutional investors continue to buy bitcoin. This is confirmed by the recent transaction histories of the two largest BTC wallets.

Source: BitInfoCharts

Additionally, blockchain explorer Blockstream revealed that a giant Bitcoin whale moved 44,979 BTC worth $1.9 billion into two wallets of unknown origin.

One wallet raised 44,612 BTC worth $1.88 billion, instantly becoming the 14th largest Bitcoin address, according to BitInfoCharts. The second wallet, which has a long history of Bitcoin transactions, received the rest of the BTC.

Blockstream also shows that a $1.9 billion bitcoin transaction costs just 0.00008496 BTC ($3.56) in one transfer.

Before the transfer, the wallet in question was the 12th richest Bitcoin address.

Meanwhile, whale-watching bot Whale Alert reports that wealthy investors moved over $163 million in BTC over the past day.

• 1,000 BTC worth $42.50 million touched from Bitfinex to Xapo
• 843 BTC worth $35.91 million touched from Coinbase to unknown wallet
• 986 BTC worth $42.25 million touched from unknown wallet to Coinbase
• 1,000 BTC worth $42.68 million touched from unknown wallet to Crypto.com

Additionally, USDT activity value (generally considered a reliable measure of bitcoin price action) is signaling a bullish rally. Specifically, the number of daily active addresses on the Tether network has fallen to a 2-year low.

Source: Messari.io

History shows that stablecoin transactions declined along with the Bitcoin price rally.

So don’t let the current sideways consolidation fool you into thinking this is a bear market. It looks like an uptrend is coming very close.

Bitcoin bull run about to restart?

What we need is a catalyst to kick start growth and there may be unexpected reports to trigger the rally.

The world’s largest asset manager, BlackRock, has $10 trillion in assets under management for institutional investors who have decided to enter the bitcoin and crypto markets.

BlackRock clients (including public pension, endowment and sovereign wealth funds) can trade cryptocurrencies through their investment management platform.

According to analysts at the Wells Fargo Investment Institute (WFII), cryptocurrencies follow the same adoption pattern as other new cutting-edge technologies like the internet. They believe that cryptocurrency is nearing a tipping point in adoption, much like the internet was in the mid-90s, and that’s why it’s a worthwhile investment.

Source: WFII report “Understanding Cryptocurrency”.

“The chart shows the pathways for US households to adopt new technologies into their era. The ascending line shows an increasing percentage of US homes using these technologies. The reception usually starts slowly, reaches a turning point, and then accelerates sharply. For example, the Internet was invented in 1983, but by 1995 only 14% of Americans (and less than 1% of the world) were using it. Interestingly, this adoption rate is similar to what we are seeing with cryptocurrencies today.

According to a recent University of Chicago survey, 13% of Americans have bought or traded crypto in the last 12 months. And according to Crypto.com, about 3% of the world uses crypto.

Overall, the crypto market has entered recovery mode with Bitcoin breaking the $40,000 resistance level. However, the largest cryptocurrency continues to be influenced by events on Wall Street, so it is important to keep an eye on the stock market as markets are closely correlated.

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